Eclipse Labs Lays Off 65% of Workers, Appoints Sydney Huang as New CEO After Token Launch Shift

Eclipse Labs Restructures, Cuts 65% Staff, and Appoints New CEO

Eclipse Labs, a Layer 2 blockchain developer, announced big changes on Monday. The company is cutting 65% of its employees and shifting its focus to building apps for users instead of just infrastructure.

Sydney Huang, known as "0xSydney" on X, has been appointed as the new CEO after Vijay Chetty (Litquidity) stepped down. Huang was previously the Product Lead at Eclipse.

Eclipse said it will now concentrate on creating a “breakout application” on its Layer 2 platform. This decision comes shortly after the company’s token generation event (TGE), where its token ES launched on Eclipse, Ethereum, and Solana. However, the token price has dropped more than 65% since launch and was trading at $0.1586 on Monday, according to CoinGecko.

Although Eclipse has mainly supported developers in the past, Huang said the new direction will focus on building apps in-house to attract end users.

Eclipse confirmed it will still maintain and improve its Layer 2 chain while putting more resources into app development.

Founded in 2022, Eclipse is known for launching its Ethereum-connected rollup in November 2024, which runs the Solana Virtual Machine. The project has been described as “Solana on Ethereum,” combining Solana’s speed with Ethereum’s security.