Eigen Labs, the developer behind Ethereum-based restaking protocol EigenLayer, has reduced its workforce by 25%, eliminating 29 positions, as part of a strategic restructuring to prioritize its newly launched EigenCloud platform. CEO Sreeram Kannan emphasized the move was not financially motivated, citing the company's robust $220 million venture funding – including a $100 million Series B round led by Andreessen Horowitz (a16z) in February 2024 that valued Eigen Labs at $1 billion.
The layoffs span multiple departments and are intended to concentrate resources on EigenCloud, described as a "verifiable cloud platform" providing decentralized computation with cryptographic verification. This infrastructure aims to compete with traditional cloud services by offering transparent, trust-minimized computation tightly integrated with blockchain activity. Kannan stated EigenLayer and its data-availability sibling EigenDA will remain operational under the EigenCloud umbrella.
Affected employees will receive three months of base pay, accelerated token vesting, extended health coverage, and career transition support. Kannan publicly invited other crypto firms to recruit departing talent to retain expertise within the ecosystem.
Following the announcement, Eigen's native token EIGEN surged nearly 10% to $1.16, reflecting investor approval of the streamlined focus. The restructuring signals a broader industry pivot toward foundational Web3 infrastructure beyond financial applications, positioning EigenCloud against both centralized cloud providers and emerging decentralized alternatives.