Eigen Labs announced a 25% reduction in its workforce as part of a large-scale restructuring aimed at refocusing resources on EigenCloud.
Reasons for Layoffs
Eigen Labs has laid off 29 employees, which accounts for 25% of its total staff. CEO Sreeram Kannan stated that this move is part of a tighter strategy to create a verifiable cloud platform. He emphasized that the layoffs were not triggered by financial strains.
Support for Laid-off Employees
Following the layoffs, Kannan announced support measures for the departing employees. Those who had over one year of service were provided with accelerated token vesting, three months’ severance pay, continuation of healthcare, and career support. The company also pledged to assist former employees in seeking job opportunities in the crypto and Web3 sectors.
Future of EigenCloud and Development Plans
EigenCloud, recently announced as a developer-centric platform, will remain a core product of the company. It will offer developers the ability to execute off-chain computations, leveraging decentralized trust guarantees. Kannan noted that the reorganization is essential for sharper execution and reduced operational complexity. In his closing remarks, he stated, 'Tomorrow we return more focused, more aligned, and ready to build what’s next.'
The staff reduction at Eigen Labs reflects the company's strategic need to concentrate on the development of EigenCloud, aided by recent funding of $70 million.
