Lido Cuts 15% of Workforce Despite $31B TVL Surge

- Lido cuts its workforce despite strong liquid staking metrics. - The restructuring follows priorities set by tokenholders, even with market growth. On August 4, 2025, Ethereum staking giant Lido shocked the market by announcing a 15% workforce reduction. The company is prioritizing cost sustainability despite controlling $31 billion in locked value. Co-founder Vasiliy Shapovalov stated the decision aims to optimize costs and does not reflect employee performance, adding that the restructuring aligns with priorities set by LDO tokenholders. This move also reinforces Lido’s commitment to sustainable growth during favorable market conditions. The downsizing will impact teams across Lido Labs, Lido Ecosystem, and Lido Alliance. Shapovalov described the move as a calculated measure to balance operational costs with strategic objectives, emphasizing the importance of maintaining Lido’s position within the liquid staking sector. The protocol allows users to retain the liquidity of their staked Ethereum while benefiting from network security and yield generation. As the second-largest protocol in its niche, Lido reports an annualized revenue of $90 million alongside its $31 billion total value locked (TVL). The market responded with mixed signals, as the LDO token initially gained 4.3% within 24 hours of the announcement. However, it subsequently declined by 21.6% over the week. This restructuring reflects a broader trend within the cryptocurrency industry, where companies are reassessing operational expenses in response to shifting market dynamics. According to the latest market data, Lido DAO (LDO) was trading at $0.931 as of August 4, at 07:09 UTC, reflecting a 4.849% change in 24-hour trading volume.