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Eigen Labs Cuts Workforce and Bets Everything on EigenCloud Development

Eigen Labs Cuts Workforce and Bets Everything on EigenCloud Development

TL;DR

  • Eigen Labs laid off 25% of its workforce to focus resources on EigenCloud, its new verifiable Web3 services platform.
  • The cuts came shortly after a16z crypto invested an additional $70 million in EIGEN tokens to support the project.
  • EigenCloud integrates data storage, dispute resolution, and decentralized execution services into a single programmable infrastructure.

Eigen Labs has laid off 25% of its staff as part of a restructuring plan aimed at prioritizing the development of EigenCloud, its newly launched verifiable Web3 services platform.

The move, which impacted 29 employees, seeks to concentrate the company’s resources on a single, globally scalable project. Eigen Labs CEO Sreeram Kannan publicly confirmed the decision through a post on X.

The layoffs follow the launch of EigenCloud and a fresh $70 million investment in EIGEN tokens by a16z crypto, aimed at accelerating the development of this new product. According to the Eigen Labs team, the restructuring will streamline operations and realign the internal structure to sustainably pursue one strategic priority.

EigenCloud brings together several critical services within a unified, programmable platform. It includes EigenDA for data storage, EigenVerify for dispute resolution, and EigenCompute for process execution. This infrastructure is designed to enable developers to build traditional applications in a decentralized environment, with blockchain-level verifiability and no intermediaries.

Eigen Labs Hasn’t Confirmed Whether More Layoffs Are Coming

Kannan acknowledged that, despite the difficulty of letting go of team members who contributed to EigenLayer’s growth, this decision aims to strengthen the company’s ability to deliver a product ready to compete on a global scale. The goal is to build the world’s first verifiable cloud platform, capable of running decentralized operations with automated validation.

EigenLayer eigen labs

Eigen Labs remains one of the key infrastructure projects within the Ethereum ecosystem, thanks to EigenLayer, its restaking protocol. However, with EigenCloud now in place, the company chose to reorganize to accelerate the rollout of enterprise-grade Web3 services.

The announcement marks one of the first major workforce reductions within the blockchain infrastructure sector in 2025. The company did not confirm whether additional layoffs are planned, though it made clear that, for now. Its operational focus will remain on scaling EigenCloud and consolidating its value proposition.

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