Layer 2 blockchain developer Eclipse Labs has undergone a major restructuring, appointing a new chief executive and laying off 65% of its workforce as it pivots from infrastructure development to building consumer-facing applications. The company announced on Monday that Sydney Huang, known online as "0xSydney," will become CEO following the voluntary departure of Vijay Chetty ("Litquidity").
The leadership transition and layoffs were first disclosed in an X post on August 25. The workforce reduction affects approximately 40 employees across engineering, product, and operations departments. Huang stated that while the company's mission to build scalable blockchain infrastructure remains intact, the new focus will be on applications that "serve end users directly."
The restructuring comes just weeks after Eclipse's token generation event for its native ES token, which has dropped 65% since its July launch. The token fell from an initial price near $0.45 to $0.16 following the announcement. Founded in 2022, Eclipse Labs built a rollup network that connects to Ethereum but runs the Solana Virtual Machine, combining Ethereum's security with Solana's throughput.
The company raised $50 million in funding across multiple rounds backed by investors including Polychain Capital and Tribe Capital. Despite the layoffs, Eclipse said it will continue to maintain its rollup infrastructure while directing more resources toward building applications in-house.
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