Eigen Labs, the developer of the EigenLayer protocol, has decided to lay off 25% of its workforce and shift its focus to the development of EigenCloud.
Staff Reduction at Eigen Labs
Eigen Labs has laid off 29 employees, representing 25% of its total staff. This decision is part of a strategic realignment towards focusing on research and development of EigenCloud. According to CEO Sreeram Kannan, impacted employees will receive financial assistance to transition to new jobs.
New Funding from a16z
Eigen Labs has secured additional funding from a16z aimed at restructuring its operations. This support is focused on the development of the EigenCloud product, which offers a unified suite of services including off-chain computation and data availability.
EIGEN Market Reaction Post Announcement
Following the announcement of layoffs, the price of EIGEN surged nearly 10% in the past 24 hours, reaching around $1.16. Additionally, the trading volume for EIGEN tokens increased by 36% to $63 million. The strategic reorganization of the company's structure is expected to positively impact EIGEN's price in both the mid and long term.
The workforce reduction at Eigen Labs and the new strategic focus on EigenCloud highlight the company's commitment to sustainable long-term development. The positive market response to the news may signal investor confidence in the new direction.
