Eclipse Pivots from Code to Users Amid Turbulent Times
Eclipse Labs, a Layer 2 blockchain infrastructure developer, has undergone a major restructuring, including the appointment of a new CEO and a significant reduction in its workforce. Sydney Huang, previously the company’s Product Lead, has been named CEO following the voluntary departure of Vijay Chetty, the former chief. The leadership change and strategic pivot follow a challenging period for the firm, including a steep decline in the performance of its native token, ES, which has dropped over 65% since its token generation event (TGE) last month, with a further 13.2% decline reported in the past 24 hours to $0.1586 as of Monday, according to CoinGecko data [1].
The company announced a 65% reduction in its workforce to align its resources with its new strategic direction, which focuses on in-house development of consumer-facing applications built on its Layer 2 infrastructure. Huang emphasized that while the company’s foundational mission of building scalable blockchain infrastructure remains unchanged, its immediate priority will be to develop applications that can attract and retain end users. “The next chapter is about serving end users and building those applications in-house,” Huang stated on X, underscoring the shift from a developer-centric model to a user-centric one [1].
Eclipse, which launched its Ethereum-connected rollup in November 2024, describes itself as “Solana on Ethereum,” integrating Solana’s high-speed virtual machine with Ethereum’s robust security framework. The company’s new approach is seen as an attempt to compete with Web2 platforms by offering decentralized applications that provide real-world utility. Despite the staff cuts, the company affirmed its commitment to maintaining and improving its Layer 2 chain while allocating more resources to application development. Analysts suggest this pivot could position Eclipse as one of the few blockchain firms successfully merging scalability, user experience, and developer flexibility [3].
The restructuring comes amid broader industry trends of consolidation and strategic realignment. Companies across the blockchain sector have been streamlining operations in response to market volatility and shifting regulatory environments. Eclipse’s decision to focus on in-house application development reflects a broader movement toward practical, user-driven use cases for decentralized technology. If the strategy proves successful, it could serve as a blueprint for other blockchain firms seeking to balance innovation with user adoption [3].
Founded in 2022, Eclipse has rapidly emerged as a key player in Ethereum Layer 2 solutions, with its technology already deployed across multiple ecosystems. The company’s future success will depend on its ability to deliver applications that can attract a broad user base while maintaining the core strengths of its infrastructure. As the firm moves forward, stakeholders will be closely watching for signs of progress in its application roadmap and market performance.
Source:
[1] The Block – https://www.theblock.co/post/368195/eclipse-labs-cuts-staff-names-new-ceo
[2] The Crypto Times – https://www.cryptotimes.io/2025/08/26/eclipse-labs-cuts-65-workforce-appoints-sydney-huang-as-ceo/
[3] Crypto Economy – https://crypto-economy.com/massive-layoffs-hit-eclipse-labs-65-of-employees-gone-amid-leadership-change/
[4] Followin – https://followin.io/en/feed/19575945
[5] Bitcoin World – https://bitcoinworld.co.in/eclipse-labs-layoffs-strategy/