Eigen Labs Cuts 25% of Workforce to Refocus on EigenCloud Development

Eigen Labs, the Seattle-based blockchain startup, has reduced its workforce by 25%, eliminating 29 roles in a strategic restructuring aimed at prioritizing the development of EigenCloud. CEO Sreeram Kannan described EigenCloud as a "verifiable" alternative to traditional cloud services, emphasizing transparency in an often-opaque sector.

The layoffs were not driven by financial constraints, according to the company. Eigen Labs remains well-capitalized, backed by $220 million in venture funding—including a $100 million Series B round led by Andreessen Horowitz (a16z) in February, which valued the firm at $1 billion.

"These changes sharpen our focus as a company," Kannan stated in a post on X. "We MOVE forward with a tighter strategy, renewed energy, and a team laser-focused on building the world’s first verifiable cloud platform."

EigenLayer, the restaking protocol foundational to the project, and its data-availability solution EigenDA will continue operating as part of EigenCloud. Departing employees will receive three months of pay, accelerated token vesting, extended health coverage, and job placement assistance. Kannan openly encouraged other crypto firms to recruit the affected talent, underscoring a commitment to retaining expertise within the ecosystem.