Eigen Labs Restructures Workforce, Shifting Focus to EigenCloud Development

Eigen Labs has laid off 29 employees as part of a restructuring effort, as announced by CEO Shriram Kannan.

«While these adjustments are challenging, they allow us as a company to focus and structure our teams in a way that steadily leads us towards our unified ambitious goal: creating the world’s first verifiable cloud platform [EigenCloud],» Kannan stated.

He expressed gratitude to the departing employees for their contributions in building the project’s foundation. They were provided with a comprehensive severance package, including reduced vesting periods, continued health insurance, and personal assistance in finding new employment.

In March 2023, Eigen Labs secured $50 million in a Series A funding round from investors including Electric Capital, Polychain Capital, Hack VC, Finality Capital Partners, and Coinbase Ventures. In a subsequent round, Andreessen Horowitz (a16z) invested $100 million.

In June 2025, Eigen Labs also raised an additional $70 million from a16z through the sale of EIGEN tokens and launched the EigenCloud platform. The total investment reached $220 million, with $170 million coming from a16z.

«A developer with such a level of vision and a plan that can truly change the landscape is a rarity,» remarked Ali Yahya, General Partner at a16z, in the investment report.

EigenCloud includes key services:

Currently, access to EigenCloud is limited to a select group of developers, with a full launch planned for the end of 2025.

The Eigen Layer platform offers ETH restaking to enhance the security of external networks. As of the time of writing, over 200 active validation services are under development.

According to DeFi Llama, the total value locked in Eigen Layer is approximately $12.2 billion, peaking at $20 billion in June 2024.

It’s worth noting that Eigen Labs brought on Ethereum developer Justin Drake as an advisor, which triggered mixed reactions from the community when this information was publicly disclosed.