Eclipse Labs Undergoes Major Restructuring: CEO Replaced, 65% Staff Cut Amid Pivot to Consumer Apps

Eclipse Labs, the developer behind a prominent LAYER 2 blockchain, has executed a dramatic strategic shift. The company replaced CEO Vijay Chetty (known as 0xLitquidity) with former Product Lead Sydney Huang and slashed 65% of its workforce. This restructuring coincides with an abrupt pivot from infrastructure development to building consumer-facing applications—a move framed as essential for relevance.

The ES token, Eclipse's native asset, has plummeted over 65% since launch, intensifying pressure to revamp operations. The firm's August 15 announcement described Chetty's exit as voluntary, emphasizing a new focus on creating a "breakout application" atop its L2 network. Market observers note the risky gambit mirrors broader industry struggles to balance infrastructure scalability with end-user adoption.