Eigen Labs has laid off 29 employees amid a restructuring of its operations, as announced by the project’s CEO, Sreeram Kannan.
Today is one of the hardest days we’ve had at Eigen Labs.
This morning, I shared plans for a restructuring of the company, streamlining our operations, and concentrating our efforts on building and scaling EigenCloud. Unfortunately, this means saying goodbye to brilliant…
— Sreeram Kannan (@sreeramkannan) July 8, 2025
“While these changes are difficult, they help us as a company to focus and build teams that can sustainably move towards a single ambitious goal: creating the world’s first verifiable cloud platform [EigenCloud],” wrote Kannan.
He thanked the departing specialists for their contributions to laying the foundation of the project. They were provided with a full severance package, accelerated vesting, continued medical insurance, and personal assistance in finding new employment.
In March 2023, Eigen Labs raised $50 million in a Series A round from Electric Capital, Polychain Capital, Hack VC, Finality Capital Partners, and Coinbase Ventures. In the next round, venture firm Andreessen Horowitz (a16z) invested $100 million.
In June 2025, Eigen Labs additionally received $70 million from a16z through the sale of EIGEN tokens and launched the EigenCloud platform. The total investment amount reached $220 million, with $170 million coming from a16z.
“It is extremely rare to find a developer with such a level of vision and a plan capable of changing everything,” noted a16z General Partner Ali Yahya in an investment report.
Ecosystem for Developing Traditional Applications with Web3 Technologies
EigenCloud includes key services:
- EigenDA — a data storage with a throughput of over 10 MB/s. It can be considered a faster alternative to BLOB space in Ethereum, designed for rollups and large data tasks;
- EigenVerify — a programmable dispute resolution system. Developers can set conditions for detecting fraud or errors, and penalties (slashing) are applied in case of violations;
- EigenCompute — verifiable off-chain computations as a service.
Access to EigenCloud is currently provided to a closed circle of developers. A full-scale launch is planned for the end of 2025.
The Eigen Layer platform offers ETH restaking to secure third-party networks. At the time of writing, there are over 200 active validation services in development.
According to DeFi Llama, the total value locked in Eigen Layer is about $12.2 billion. A peak value of $20 billion was recorded in June 2024.
Previously, Eigen Labs engaged Ethereum developer Justin Drake as an advisor. The public disclosure of this information elicited mixed reactions from the community.