Lido Cuts 15% of Workforce to Strengthen Long-Term Ethereum Staking Strategy

Ethereum

Lido Cuts 15% of Workforce to Strengthen Long-Term Ethereum Staking Strategy

In a move aimed at preserving agility in an increasingly competitive staking market, Ethereum liquid staking giant Lido is reducing its workforce by about 15%.

The adjustment, announced by co-founder Vasiliy Shapovalov, affects contributors across several branches of the project, including Lido Labs, the Lido Ecosystem, and the Lido Alliance.

Shapovalov emphasized that the cuts are not linked to individual performance but rather part of a broader strategy to keep operational costs in check while prioritizing sustainable expansion. He acknowledged that making such changes during a bullish phase in the crypto market might appear counterintuitive, but argued that now is the time to prepare for market cycles ahead.

Since its launch in 2020, Lido has become a key player in Ethereum staking, offering users a way to earn staking rewards while retaining liquidity through its stETH token. This year‘s Lido v3 upgrade introduced “stVaults,” modular smart contracts that allow advanced staking strategies, expanding the protocol’s flexibility for power users and institutions.

With $31 billion in assets locked and approximately $90 million in yearly revenue, Lido stands as the second-largest DeFi protocol globally, according to DeFiLlama. Still, with liquid staking growing rapidly and new competitors entering the field, the team appears determined to remain lean and focused.

By tightening its structure now, Lido aims to channel resources toward core developments, strengthen its position in the market, and continue aligning its operations with the long-term interests of LDO holders.