Eigen Labs reduced its workforce by 25%, eliminating 29 positions, as CEO Sreeram Kannan stated that he restructured the company to focus on developing EigenCloud, which he described as a “verifiable” alternative to conventional cloud services.
The Seattle-based startup clarified that the layoffs were not a reaction to financial strain. The company has secured $220 million in venture funding, including a $100 million Series B round led by a16z in February, bringing its valuation to $1 billion.
“Despite the challenges these changes pose, they sharpen our focus as a company and ensure our teams are organized to sustainably achieve a single, ambitious objective: to create the world’s first verifiable cloud platform,” Kannan remarked in a statement. “We are moving forward with a refined strategy, renewed energy, and a dedicated team focused on our mission.”
EigenLayer, the restaking protocol supporting the project, along with its data-availability counterpart EigenDA, will continue operating as part of EigenCloud, Kannan noted in a subsequent announcement.
Departing employees will receive three months of pay, accelerated token vesting, continued health coverage, and assistance in finding new employment. Kannan also encouraged other firms in the crypto sector to hire the departing staff, signaling a desire to retain talent within the ecosystem.
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