Eigen Labs Restructures Workforce to Prioritize EigenCloud Expansion

Eigen Labs, the blockchain development studio behind EigenLayer, has announced a significant restructuring to sharpen its focus on EigenCloud growth. CEO Sreeram Kannan described the decision as "painful but essential" for long-term success, emphasizing the need to align resources with Core product development.

The layoffs span multiple departments including support, engineering, and operations—a clear indication of organization-wide realignment rather than targeted cuts. Affected employees with over one year of tenure receive accelerated token vesting, three months' severance, continued healthcare coverage, and career transition support.

Despite workforce reductions, Eigen Labs maintains strong financial footing with $220 million in total funding, including a recent $70 million investment from Andreessen Horowitz. The restructuring aims to optimize operations for EigenCloud's dual mission of supporting both off-chain and on-chain verification systems.