Eigen Labs Cuts 25% of Workforce to Prioritize EigenCloud Development

Eigen Labs, the Seattle-based blockchain startup, has reduced its workforce by 25%, eliminating 29 roles as part of a strategic restructuring. CEO Sreeram Kannan emphasized the MOVE was not driven by financial constraints but to sharpen focus on building EigenCloud—a "verifiable" alternative to traditional cloud services.

The company, backed by $220 million in venture funding including a $100 million Series B round led by a16z, maintains a $1 billion valuation. Kannan framed the layoffs as a necessary step to align resources with its ambitious goal: creating the world's first verifiable cloud platform.

Affected employees will receive three months' pay, accelerated token vesting, and job placement assistance. Kannan openly encouraged other crypto firms to recruit the departing talent, signaling a commitment to retaining skilled professionals within the ecosystem.

Core products including the EigenLayer restaking protocol and EigenDA data-availability solution will continue operating as foundational components of the EigenCloud initiative.