Eclipse Labs Slashes 65% of Workforce in Major Restructuring, Names Sydney Huang as New CEO

Massive layoffs hit blockchain infrastructure builder Eclipse Labs as the company cuts nearly two-thirds of its workforce in dramatic restructuring move.

Leadership Shakeup

Sydney Huang steps into the CEO role amid the bloodbath, taking helm of a company now operating with skeleton crew. The 65% workforce reduction signals severe operational recalibration—either preparing for acquisition, last-ditch survival move, or classic crypto pivot into "lean mode."

Market Realities Bite

Another day, another crypto firm discovering that burning VC cash doesn't automatically translate to sustainable business models. Huang now faces the unenviable task of rallying remaining troops while navigating the brutal infrastructure sector where technical promise often collides with revenue reality.

Eclipse Labs Pivots to In-House App Development 

Eclipse, which has historically focused on infrastructure and developer support, is now pivoting to in-house application development to attract end users. 

Huang emphasized this shift on X, stating, “Our mission has always been to build infrastructure that can serve real-world applications. That remains unchanged, but our focus is evolving. The next chapter is about serving end users and building those applications in-house.”

Despite the layoffs, the firm affirmed its commitment to maintaining and enhancing its LAYER 2 chain while allocating more resources to application development. 

Eclipse Labs’ layoffs also come after the August 25, 2025, updates about the US-based crypto exchange Coinbase’s CEO, Brian Armstrong, firing engineers who refused to adopt artificial intelligence (AI) coding tools like GitHub Copilot and Cursor. Armstrong took this initiative as the firm’s goal is to reach 50% by the end of the quarter. 

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