Lido, a leading liquid staking protocol, has announced a workforce reduction of approximately 15% across its Lido Labs, Ecosystem, and Alliance teams as of August 2025. This decision, confirmed by cofounder Vasiliy Shapovalov, reflects a strategic choice aimed at cost control and long-term sustainability rather than individual employee performance. The reduction spans multiple branches within the organization, indicating a thorough adjustment rather than isolated team cuts. The move is part of a broader effort to optimize operational focus amid a competitive and evolving staking market.
The rationale behind the layoffs emphasizes preserving organizational agility despite prevailing bullish trends in the crypto market. Lido intends to channel resources more efficiently toward core development activities, reinforcing its capacity to innovate and maintain resilience through future market cycles and volatility. This approach aligns with the interests of LDO tokenholders by prioritizing sustainable growth and preparing the protocol to withstand potential downturns or market fluctuations. By streamlining its workforce, Lido aims to balance immediate cost savings with the maintenance of long-term protocol health. The decision was described as a difficult but necessary one to ensure operational focus. These changes also reflect Lido’s commitment to alignment with LDO tokenholder priorities.
Despite the reduction in staff, Lido continues to hold its position as the second-largest liquid staking protocol by total value locked (TVL), currently standing at around $31 billion. The protocol generates approximately $90 million in annualized revenue and has recently managed to contain an oracle key breach without any loss of user funds or compromise to its operational integrity. The company’s commitment to ongoing development remains evident, as the workforce adjustments are not expected to hinder the progression of advanced staking features, including the modular smart contract upgrades introduced in Lido v3.
Founded in 2020, Lido has established itself as a prominent player within the liquid staking sector, providing users with the ability to stake ETH while maintaining liquidity through stETH tokens. Facing increasing competition and operational challenges, the protocol’s decision to adopt a leaner organizational structure highlights the necessity for prudent resource management and continuous innovation. The recent staffing changes, while reflecting operational discipline, also underscore the inherent risks and uncertainties present in the rapidly changing crypto environment.
