MEGA cuts 20% of workforce as former MegaETH Foundation restructures

MEGA, formerly known as MegaETH,has cut 20% of its workforce as part of a restructuring aimed at shifting the company in a new direction, according to an X post from co-founder Shuyao Kong.

The cuts affect employees who helped build the Ethereum Layer 2 MegaETH blockchain, wallet, and ecosystem, while the founders, early employees, and core engineering team remain committed to the project.

"We believe cryptography and distributed systems will change how the world produces and accesses purified intelligence," Kong said. "We have a lot to prove, and a lot of work ahead."

Just this week, the MegaETH Foundation rebranded as MEGA and committed $30 million to new products, including AI inference.

"We believe crypto is the only technology that makes AI fair and open," Kong told The Block.

The MegaETH team launched the MEGA token in April after hitting its first performance milestone, with 53.3% of the supply tied to KPI-based staking rewards.

The MEGA token trades around $0.045 at publication time, up about 7.5% over the past 30 days.