Eclipse Labs has undergone a major restructuring, cutting 65% of its workforce and appointing Sydney Huang as CEO. The move follows Vijay Chetty’s departure and aims to realign the company’s focus on Ethereum L2 development using Solana’s SVM. This shift prioritizes application building and comes amid a decline in Eclipse’s ES token valuation, which has decreased by 32.7% over the past 30 days.
The restructuring represents a strategic shift for Layer 2 projects facing market volatility. The company aims to optimize its resources for app development on its infrastructure. While public statements from leadership are limited, the market’s response has been significant, with the ES token experiencing a 7.8% decrease in the past 24 hours.
Recent shifts in the Layer 2 space highlight both recovery and stagnation patterns, influencing how projects adapt to changing demands and volatility. It remains to be seen whether Eclipse will successfully navigate this period of restructuring and leverage its streamlined resources for future success.