Polygon Labs said on Tuesday it has laid off 100 employees, or nearly 20% of its positions, after it combined multiple business units earlier this year, making it the latest digital asset company to execute job cuts.

Employees will each receive three months of severance pay, regardless of their level or tenure at the company, it said in a blog.

The decentralised platform that makes digital coin Ethereum more accessible was founded in 2017 as Matic and was rebranded to Polygon in Feb 2021. More than trillion dollars in value have been wiped out from the crypto sector last year as rising interest rates exacerbate worries of an economic downturn.

The crash led to high-profile bankruptcies of key industry players such as crypto hedge fund Three Arrows Capital and Celsius Network.

The biggest blow came after major exchange FTX filed for bankruptcy protection in November. Its swift fall has sparked tough global regulatory scrutiny of how crypto firms hold funds and conduct business operations.

Last month, Digital Currency Group-owned Luno said it would cut 35% of its total workforce to weather a slump in the cryptocurrency market.

(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Shailesh Kuber and Arun Koyyur)