Eigen Labs has streamlined its personnel team, focusing on the development of the EigenCloud platform to expand capabilities and projects on Ethereum.
The company has cut 25% of its workforce and received additional investment from a16z to strengthen its strategy while providing financial support for affected employees during the transition.
MAIN CONTENT
Eigen Labs laid off 29 employees, accounting for 25% of the workforce to restructure.
a16z has injected an additional $70 million into EIGEN Token to boost the development of EigenCloud.
The EIGEN price rose nearly 10% after the restructuring and funding information.
What changes has Eigen Labs made to its workforce and business strategy?
Eigen Labs, the entity developing the EigenLayer (EIGEN) protocol on the Ethereum network, has laid off 29 employees, accounting for 25% of its workforce. CEO Sreeram Kannan affirmed that the company will provide financial support to help them transition their careers. This move aims to restructure and focus on developing the EigenCloud service.
"It is not easy to say goodbye to many teammates who have made significant contributions to the project. We are committed to supporting them respectfully, empathetically, and with specific resources,"
Sreeram Kannan, CEO of Eigen Labs, July 2025
This decision reflects a strategic shift from current services to developing new solutions based on decentralized cloud technology, demonstrating the profound experience and long-term vision of Eigen Labs' leadership. The streamlined personnel team means optimizing resources and enhancing research and product development efficiency.
What is EigenCloud and why is it receiving significant investment from a16z?
EigenCloud is a platform built on EigenLayer, providing a comprehensive service package that includes off-chain computation and data availability assurance. This is an important advancement in developing the Layer 2 ecosystem on Ethereum, bringing value and scalability.
"We are committed to enhancing the development of EigenCloud as a groundbreaking platform based on EigenLayer, supporting cross-chain computation and improving scalability for the Ethereum network,"
Statement from a16z representative, June 2025
In mid-June 2025, a16z invested an additional $70 million to purchase EIGEN Token to accelerate research and development for EigenCloud. This backing reflects major investors' confidence in the technological vision and market potential that EigenCloud aims for. Additionally, this platform helps optimize costs, increases big data processing efficiency, and offers flexible integration between off-chain and on-chain, creating a promising competitive advantage.
How did the EIGEN price react to the restructuring and funding information?
The price of the EIGEN Token has increased nearly 10% in the 24 hours following the announcement of restructuring and new investment. As of July 8, 2025, EIGEN is trading at around $1.16, with a diluted market capitalization of approximately $2 billion and an average daily trading volume reaching $63 million – a 36% increase compared to before.
From a technical analysis perspective, the EIGEN price is striving to regain upward momentum after several months of decline. The restructuring of operations and focus on developing EigenCloud are seen as key factors in maintaining medium- and long-term upward trends for this Token.
Criteria Before Restructuring After Restructuring Number of Employees Entire Workforce Reduced by 25%, laid off 29 employees Development Strategy Mainly focused on EigenLayer Focused on developing EigenCloud on the EigenLayer platform Investment from a16z Previously invested An additional $70 million to purchase EIGEN Token EIGEN Price Increased ~10% after the news
Frequently Asked Questions (FAQ)
By how much % has Eigen Labs reduced its workforce? Eigen Labs has laid off 25% of its workforce, equivalent to 29 employees, in order to restructure and focus on developing new products. Why does a16z continue to invest in Eigen Labs? a16z invested an additional $70 million in EIGEN Token to support the development of the EigenCloud platform, appreciating its scaling potential and application technology. What are the highlights of EigenCloud? EigenCloud provides off-chain computing services and ensures data availability, offering a comprehensive solution to effectively scale the Ethereum network. How has restructuring information affected the EIGEN price? The EIGEN price rose nearly 10% in the first 24 hours after restructuring and new investment information, indicating positive market expectations. How does Eigen Labs support laid-off employees? Eigen Labs is committed to providing financial support and facilitating career transitions with high empathy and respect.
Source: https://tintucbitcoin.com/eigen-labs-sa-thai-25-nhan-vien/
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