With over $12.2 billion in Total Value Locked (TVL), EigenLayer is one of the leading Ethereum (ETH) restaking protocols. Despite this achievement, Eigen Labs, the company behind EigenLayer, has recently made the difficult decision to reduce its workforce to focus on new strategic priorities.
While the affected employees will receive a generous severance package, this kind of workforce reduction is not uncommon in the current crypto landscape.
What Caused The Shift
In a post on X, Sreeram Kannan, the CEO of Eigen Labs, shared the challenging news of the company’s restructuring. He emphasized the importance of streamlining operations and redirecting resources towards the development of EigenCloud, the firm’s next big initiative.
Today is one of the hardest days we’ve had at Eigen Labs. This morning, I shared plans for a restructuring of the company, streamlining our operations, and concentrating our efforts on building and scaling EigenCloud. Unfortunately, this means saying goodbye to brilliant…
— Sreeram Kannan (@sreeramkannan) July 8, 2025
This restructuring appears to be driven by a new vision rather than financial difficulties. Kannan’s post further highlighted the company’s goal of building “the world’s first verifiable cloud platform.”
The affected employees will continue to receive support from Eigen Labs, including healthcare coverage, accelerated vesting, career support, and three months of base pay.
The crypto community has shown an outpouring of support, with various industry leaders reaching out to offer opportunities to the affected employees.
This restructuring follows a recent $70 million investment from Andreessen Horowitz’s blockchain-focused arm, a16z, aimed at fueling the launch of EigenCloud. This initiative, released just a month ago, further underscores EigenLayer’s commitment to its economic model, integrating new fee structures that support staking.
EigenCloud enhances EigenLayer’s capabilities by combining data availability (EigenData), general computing (EigenCompute), and dispute resolution (EigenVerify) into a unified platform. This innovative approach will allow developers to achieve verification for actions on and off-chain, matching the assurances typically associated with on-chain operations.
A Familiar Direction
Eigen Labs’ recent layoffs reflect a wider trend within the crypto sector in 2025. Many companies are adopting similar strategies to adapt to the rapidly changing market environment.
In April, Kraken laid off hundreds of employees in an effort to streamline operations and remove redundancies. Earlier this year, market intelligence platform Messari also underwent a reorganization, resulting in a 15% workforce reduction affecting both full-time and contract staff.
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