MEGA Lays Off 20% of Staff as MegaETH Team Pivots Toward AI Products
MegaETH's parent, now called MEGA, has cut 20% of its workforce while pivoting to AI inference. Here is what traders should know and what to watch next.
In this article
MEGA, the organization behind the Ethereum layer-2 network MegaETH, has reduced its workforce by 20% after months of restructuring as it expands into artificial intelligence products. For traders, the move is a reminder that even well-funded crypto infrastructure projects are reshaping their strategies as the market cools.
Key takeaways
- Co-founder Shuyao Kong said reorganizing the teams resulted in a 20% reduction in staff.
- The founders, early employees and core engineering team remain committed to the project.
- MEGA plans to launch a public inference market in December.
- Major crypto assets were mostly lower in the session, with ETH down 1.95% at 1,896.57.
What happened
On Friday, Kong said the organization had reorganized its teams, and that staff who worked on its blockchain, wallet, ecosystem support and communications had left. She did not disclose how many employees were affected or when the layoffs took place. Kong thanked the departing employees and offered to introduce them to potential employers.
The cuts came days after a rebrand. The foundation announced its new name on 10 November, alongside a $30 million commitment from its existing treasury to develop products on MegaETH. MegaETH remains the name of the blockchain itself after the rebrand.
Background: why an AI inference market?
Inference means running a trained AI model to generate an answer or another output. A whitepaper from co-founders Yilong Li and Lei Yang outlined a proposed inference market meant to give users access to competing AI service providers. Kong told The Block that details about providers and models will be shared at launch.
The strategic shift also comes against a weaker on-chain backdrop. One report, citing Crypto Briefing, said MegaETH's total value locked peaked above $245 million in May 2026 and had fallen to about $12 million by the time of the restructuring. Total value locked is a rough gauge of how much capital is deposited in a network's applications, so a drop of that size suggests far less activity than at the peak. Kong did not directly link the layoffs to the new strategy, so the connection between the two should be treated as context rather than confirmed cause.
Market context
The news landed in a soft market. MegaETH is an Ethereum layer-2, so ETH is the closest large-cap reference. At 08:37 UTC on 14 November, ETH traded at 1,896.57, down 1.95% on the day, within a range of 1,880.84 to 1,981.82. BTC stood at 67,046.00, down 2.51%, with a day range of 66,492.00 to 70,045.00.
| Asset | Price | 24h change |
|---|---|---|
| BTC | 67,046.00 | -2.51% |
| ETH | 1,896.57 | -1.95% |
| SOL | 75.2300 | -5.89% |
| XRP | 0.982202 | -4.78% |
The broad decline across large coins suggests the layoffs were not the main driver of today's moves. Layer-2 news of this kind tends to matter more for sentiment toward the sector than for the price of any single major coin.
What to watch next
- The December launch: whether the inference market goes live on schedule and which providers take part.
- Ecosystem health: whether deposited capital and application activity on MegaETH stabilize or keep shrinking.
- Further disclosures: the headcount and timing of the cuts have not been shared, and the team may add detail.
- Sector read-across: whether other layer-2 teams announce similar restructurings or pivots.
Crypto markets are highly volatile, and this article is for education only and is not investment advice.
Frequently asked questions
Why did MEGA cut 20% of its staff?
Co-founder Shuyao Kong said the organization had restructured over several months, bringing in new capabilities and reorganizing teams. She did not directly tie the layoffs to its new AI strategy.
Which employees were affected by the MegaETH layoffs?
Staff who worked on the blockchain, wallet, ecosystem support and communications were affected. The founders, early employees and core engineering team remain with the project.
When will MEGA launch its AI inference market?
MEGA has said it plans to launch a public inference market in December, with details on providers and models to be shared at launch.
- MegaETH Parent Cuts 20% of Staff Amid AI Expansion — cointelegraph.com
- MEGA cuts 20% of workforce as former MegaETH Foundation restructures — theblock.co
- MEGA Cuts 20% of Workforce After MegaETH Rebrand and AI Pivot — cryptonews.net
- MEGA cuts 20% of staff after $30 million AI product push — finwire.io
- MEGA Cuts 20% of Workforce After MegaETH Rebrand and AI Pivot - Coin Edition — coinedition.com
- MEGA Layoffs Cut 20% of Staff After $30M AI Pledge — bitcoinfoundation.org