MegaETH parent cuts 20% of staff amid restructuring, AI push

MEGA, the organization behind Ethereum layer-2 network MegaETH, has reduced its workforce by 20% following months of restructuring as it expands into artificial intelligence products. 

On Friday, MegaETH co-founder Shuyao Kong said the organization had reorganized its teams, resulting in the departures of staff who worked on its blockchain, wallet, ecosystem support and communications. Kong did not disclose the number of employees affected or when the layoffs occurred. She said MEGA’s founders, early employees and core engineering team remain committed to the organization.

“We’ve brought together new capabilities and reorganized our teams, a process that has resulted in a 20% reduction in our staff,” Kong said. “These are people who helped build MEGA from its earliest days.”

The workforce reduction comes as MEGA shifts its focus toward developing products on the MegaETH network, including artificial intelligence services. The organization has committed $30 million to the initiative, although Kong did not directly link the layoffs to its new strategy.

In a whitepaper, MegaETH co-founders Yilong Li and Lei Yang outlined a proposed inference market aimed at giving users access to competing AI service providers. Their approach seeks to address concerns about whether providers use the advertised models and how they handle customer data.

Kong said MEGA plans to launch a public inference market in December.

Related: MegaETH mainnet to launch Feb. 9 after clocking 35K TPS in testing