Workforce Downsizing Initiated Amid Eigen Labs' Organizational Revamp

Eigen Labs, the company behind the Ethereum restaking protocol, EigenLayer, which holds over $12.2 billion in Total Value Locked (TVL), has recently made significant staff cuts in a restructuring effort. CEO Sreeram Kannan announced the decision, emphasizing their focus on building and scaling their new product EigenCloud. The laid-off employees will continue to receive support from Eigen Labs, including healthcare, career support, and three months' base pay.

This move comes after a $70 million investment from a16z, a blockchain-focused arm of the venture capital company Andreessen Horowitz, which facilitated the launch of EigenCloud. The large-scale layoffs mirror a broader downturn in the crypto industry, seen in other companies like Kraken exchange and Messari.