Eigen Labs Cuts 25% Workforce to Focus on EigenCloud, EIGEN Gains 10%

Eigen Labs, the blockchain company behind the EigenLayer (EIGEN) protocol, has announced a significant restructuring of its workforce. The company has laid off 29 employees, which constitutes 25% of its total workforce. This decision was made to refocus the company's efforts on the development of EigenCloud, a platform built on top of EigenLayer that offers a range of services including off-chain computation and data availability.

The layoffs were not driven by financial difficulties, according to Sreeram Kannan, CEO of Eigen Labs. Instead, the move is part of a strategic realignment to prioritize the development of EigenCloud. The company has received additional funding from a16z, a prominent venture capital firm, to support this transition. In mid-June 2025, a16z purchased $70 million worth of EIGEN tokens to back the development of EigenCloud.

Kannan expressed his gratitude to the impacted employees and assured them of the company's commitment to supporting their career transitions. "Restructuring our organization and saying goodbye to a number of our teammates, who have given so much to the project, is incredibly painful. This morning, I spoke with impacted team members, shared my immense gratitude for their contributions, and laid out how Eigen Labs is committed to supporting their next chapter with empathy, respect, and concrete resources," Kannan stated.

The announcement of the layoffs and the refocusing of the company's efforts on EigenCloud had a positive impact on the price of EIGEN tokens. Following the news, the price of EIGEN gained nearly 10% to trade at approximately $1.16 on Tuesday, July 8. This price increase reflects investor confidence in the company's strategic shift and the potential of EigenCloud.

The restructuring of Eigen Labs is expected to have a significant impact on the company's future operations and the price of EIGEN tokens. The technical analysis suggests that EIGEN has been attempting to regain bullish momentum after a period of correction. The strategic reorganization and the focus on EigenCloud are likely to play a crucial role in the mid and long-term price action of EIGEN.