NEW YORK CITY – Polygon Labs announced in a blog post Tuesday it has cut around 100 jobs, nearly 20% of its workforce, as the company reconsolidates its ecosystem. The post said employees laid off would receive three months' severance, regardless of position or tenure.

On Jan. 10, Polygon announced the company’s decision to terminate the Polygon Studios corporate entity and merge its employees and subsidiaries into a new entity called Polygon Labs. That announcement stated that the change would not “impact [...] the employees or day-to-day operations of Polygon.” 

The Jan. 10 announcement and Tuesday’s blog post contradict each other over the impact on employees, which may explain why investors may have been caught unawares. MATIC dropped 6.8% Tuesday morning, from $1.47 to $1.37. MATIC is valued at $1.40 as of press time.