Blockchain developer MEGA, formerly known as MegaETH, has cut 20% of its workforce in a restructuring meant to move the company in a new direction, co-founder Shuyao Kong said in a post on X on Friday.

The layoffs come days after the MegaETH Foundation rebranded as MEGA and committed $30 million to new products, including AI inference. The cuts show the team narrowing its focus away from the Ethereum (CRYPTO: $ETH) layer 2 network it was built around.

According to Kong's post, the cuts affect employees who helped build the MegaETH blockchain, its wallet and its ecosystem. The founders, early employees and core engineering team are staying with the project.

More From Cryptoprowl:

NYSE Parent ICE to Bring Hyperliquid-Based Perpetual Futures to US

Bitwise Raises Bitcoin Price Forecast To $1.6 Million By 2036

Survey Finds 90% Of Large Businesses Are Embracing Tokenized Money

Moody's Assigns Investment-Grade Rating To Ripple's Stablecoin

Stablecoin Firm RedotPay To Hold IPO By Year's End: Reports

Kong wrote that the company believes cryptography and distributed systems will change how the world produces and accesses intelligence, adding that it has "a lot to prove, and a lot of work ahead."

She says that the company sees crypto as "the only technology that makes AI fair and open."

The team launched the MEGA (CRYPTO: $MEGA) token in April after hitting its first performance milestone, with 53.3% of the supply tied to staking rewards linked to key performance targets.

MEGA traded around $0.045 on Friday afternoon.