Eigen Labs, known for its Ethereum restaking project, has announced a significant reduction of its workforce by 25%. The decision is part of a strategy to develop the EigenCloud platform.
Workforce Reduction
On July 8, 2025, Eigen Labs announced the layoff of 29 employees, comprising approximately a quarter of the company's workforce. CEO Sreeram Kannan shared this news via a message on X, indicating that the layoffs aimed to streamline operations and align the company's focus toward a single overarching goal.
EigenCloud Strategy
EigenCloud, launched last month, integrates the data layer EigenDA, dispute resolution EigenVerify, and execution engine EigenCompute into a single programmable platform. The aim is to create reliable Web2 applications with blockchain-level verifiability. The architecture provides a blend of smart contract flexibility with traditional cloud convenience.
Investment Support and Future Plans
To accelerate the development of EigenCloud, the investment branch a16z, a part of Andreessen Horowitz, purchased an additional $70 million in EIGEN coins. Management suggests this new investment will help speed up product-market fit while allowing a focus on scalable cloud infrastructure.
Through strategic restructuring and investment, Eigen Labs is preparing for its next stage, emphasizing growth and global impact.
