The post Eclipse shakes up executive ranks amid layoffs and app-first pivot appeared on BitcoinEthereumNews.com.

Eclipse Labs is burning its ships. Just weeks after its token launch, the L2 developer has replaced its CEO and executed deep layoffs, abruptly abandoning its infrastructure-only model to build its own consumer applications in a fight for relevance. Summary Eclipse Labs replaces CEO Vijay Chetty with Sydney Huang and cuts 65% of staff. The firm pivots from infrastructure to building its own consumer applications. ES token has dropped over 65% since launch, adding pressure to restructure. In an X post on August 15, Layer 2 developer Eclipse Labs announced a brutal corporate restructuring, replacing high-profile CEO Vijay Chetty, known online as 0xLitquidity, with former Product Lead Sydney Huang (0xSydney). Today, Eclipse Labs announced team and leadership changes to align with a new direction post-TGE. Over the past months, we’ve explored opportunities for application development on the network. Going forward, we’ll prioritize building a breakout application on top of Eclipse’s L2… — Eclipse (🐮,🌑) (@EclipseFND) August 25, 2025 The announcement detailed a “voluntary departure” for Chetty and a 65% reduction in workforce, a move the company stated was necessary to “align resources with our updated strategy.” According to the announcement, the new strategy involves a sharp pivot from being a neutral infrastructure provider to prioritizing the in-house development of a “breakout application” on its own network. A pivot forced by a shifting market Sydney Huang, the new CEO, detailed the drastic shift as a direct response to a harsh new reality in the Layer 2 landscape. Huang stated that while the mission to build infrastructure for real world applications remains, the focus must evolve. “The market has shifted: interesting technology alone is no longer enough, and scale is meaningless without users,” Huang wrote. Today I am stepping up as CEO of Eclipse. Our mission has always been to build infrastructure…

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Filed under: News - @ August 27, 2025 7:28 am