Eclipse Labs Lays Off Two-Thirds of Employees After Token Launch Disaster
Date: 2025-08-27 Author: Henry Casey Categories: BUSINESS
L2 project Eclipse Labs announced radical changes in its strategy and team composition a month after the launch of its own token. The management stated that the main focus will now be on developing unique products based on the Eclipse infrastructure, and not just the technology itself.
Sydney Huang, better known by the pseudonym 0xSydney, has been appointed CEO. She replaces Vijay Chetty (0xLitquidity), who left the post voluntarily. Huang previously worked as a product manager and emphasized that the company's mission remains unchanged - developing infrastructure for real applications. However, the priority is shifting towards end users and creating its own solutions.
As part of the updated course, the company intends to reduce its staff by 65%. According to Eclipse Labs representatives, this step will allow for more flexible resource allocation and focus on the implementation of a new stage of development. The official statement acknowledged that the decision was difficult but necessary.
The crisis in the project is largely due to the unsuccessful launch of the ES token, which took place on July 15. During TGE, the coin appeared in three networks at once - Eclipse, Ethereum and Solana, and was then added to the listing of major exchanges Bitget, MEXC, Bybit and Gate. However, in the first hours of trading, the asset lost 21% of its value. Now its price is around $ 0.16, which is 65% below the launch level, and the news of the restructuring caused an additional drop of 7% in a day.
A separate source of discontent was the ES airdrop. Users considered the distribution unfair, especially in relation to early investors in the network and buyers of the NFT project ASC. Despite the fact that the team was suspended from participation in the airdrop in order to exclude insider schemes, this did not save the situation. A wave of criticism has begun in the crypto community, which has hit the project's reputation.
Thus, Eclipse Labs has found itself at a turning point: on the one hand, the project is losing the trust of some investors, and on the other, it is trying to restructure and prove the viability of the new strategy. The company's success will now depend on whether it can offer the market truly in-demand products and restore the community's confidence.
