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- Eclipse Labs announces major layoffs and leadership change with new CEO.
- Company shifts focus to end-user applications, cutting 65% workforce.
- Eclipse’s token ES falls 65% post-TGE amid strategic pivot.
Eclipse Labs, a key player in the Layer 2 blockchain sector, announced significant changes on Monday. Sydney Huang, known as “0xSydney” on X, will take over as the new CEO. This comes after the voluntary departure of Vijay Chetty, also known as Litquidity. Huang will now take charge of the company as it transforms its orientation towards end-user applications after having served as the company’s Product Lead.
As part of this restructuring, Eclipse is cutting its workforce by 65%. According to the company, this is necessary in order to keep up-to-date with its new strategic vision. Eclipse will be aimed at developing user applications on top of its current Layer 2 infrastructure. Although the company reduced its workforce, it assured stakeholders that it would enhance its Layer 2 chain in addition to transferring resources to the development of in-house applications.
The reorganisation follows closely after the Eclipse token generation event (TGE), where the company’s native token, ES, was launched on Ethereum, Solana, and Eclipse. Nevertheless, the ES token has experienced a sharp drop of more than 65 percent since its launch. Over the last day, the token lost 13.2 percent and changed hands at $0.1586, according to CoinGecko.
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A Strategic Pivot: End-User Focus
The appointment of Sydney Huang is a significant change in Eclipse’s strategy. Though the company will continue to support blockchain infrastructure, it will now focus more on developing applications that directly serve end users. Huang said in a post on X that the following chapter will be on serving end users and developing such applications in-house.
Eclipse Labs was founded in 2022, and its Ethereum-connected rollup was launched in November 2024. The rollup aims to merge the speed of Solana and the security of Ethereum. However, under Huang, Eclipse seeks to move beyond a developer-oriented strategy to one that is consumer-friendly. This shift of focus emphasizes the growing significance of an easy-to-use application in the dynamically developing blockchain world.
Eclipse Labs is determined to be innovative despite the layoffs. The company will focus on improving its blockchain technology and giving priority to creating applications accessible to a wider audience. The new strategy will put Eclipse in a position to compete better in the expanding Layer 2 ecosystem.
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