OP Labs, the infrastructure company behind the Ethereum Layer 2 network Optimism, has cut 20 employees in a restructuring aimed at sharpening its strategic focus. CEO and co-founder Jinglan Wang confirmed the layoffs in an internal Slack message shared publicly on X on March 12.

"This is not about finances," Wang wrote. "OP Labs is well capitalized with years of runway." The cuts are about "doing fewer things well, making decisions faster, and reducing coordination overhead" — not spreading the team across too many initiatives.

Generous Severance

Departing employees will receive three months of base pay as a floor, with one additional month for each year of tenure up to five months total. They also receive six months of healthcare continuation and keep their laptops. Wang offered to personally route resumes to relevant hiring managers.

Turbulent Backdrop

The layoffs arrive during one of Optimism's most challenging periods. In February, Coinbase's Base — the largest and most prominent chain built on the OP Stack — announced it was migrating to its own independent tech stack. The departure represented a significant blow to Optimism's ecosystem strategy and a key source of sequencer revenue.

The OP token fell roughly 3% following the announcement.

Wang was direct with remaining staff: "We are not shuffling the same amount of work across fewer people. The goal is to do fewer things — and to do them exceptionally well." She said the team would receive clarity on which workstreams continue and which are being wound down entirely.

The restructuring signals a leaner, more focused chapter for OP Labs as it competes in an increasingly crowded Ethereum L2 landscape.