MEGA cuts 20% of staff after rebrand, $30M AI push

MEGA, the organization behind the MegaETH Ethereum layer-2 network, has cut 20% of its staff as part of a restructuring that shifts its focus toward artificial intelligence products. Co-founder Shuyao Kong announced the workforce reduction in a Nov. 13 post on X, according to Cointelegraph. The layoffs affect employees who worked on the blockchain, wallet, ecosystem support, and communications teams, the report said.

Restructuring follows rebrand and product shift

Kong said the organization had spent months preparing to move in a new direction, bringing in new capabilities and reorganizing teams. She thanked departing colleagues and offered to introduce them to prospective employers, describing their work as foundational to MEGA’s next phase. The founders, early employees, and core engineering team remain committed, she said.

The workforce reduction comes days after MEGA committed $30 million from its existing treasury to develop products on the MegaETH network, starting with AI services. The organization had already signaled a move toward building applications internally. In July 2026, crypto.news reported that MEGA was closing its Mega Mafia accelerator after two cohorts supported roughly 20 teams that collectively raised $80 million. Kong said at the time that most successful applications supported by the program were no longer being built on MegaETH. Global Token Exchange, Noise, and HelloTrade had chosen other chains.

AI inference market planned for December

In a November white paper, co-founders Yilong Li and Lei Yang outlined a proposed inference market aimed at giving users access to competing AI service providers. The approach, described as “Purified Intelligence,” seeks to address concerns about whether providers use the advertised models and how they handle customer data. By making inference interchangeable across providers, the founders argue, more suppliers could compete for customer demand.

Kong told The Block that details about the marketplace’s operation and available providers or models were being held until launch. All new products are intended to run on MegaETH, with planned network upgrades supporting the inference product. The public launch is scheduled for December 2026.

Why it matters

For MEGA, the staff cuts mark a sharp pivot away from its original ecosystem-building strategy toward first-party products. The closure of the Mega Mafia accelerator and the departure of teams that built core infrastructure suggest a consolidation of resources around AI and the MegaETH network. How the organization executes on its $30 million commitment while retaining core engineering talent will be a key test of whether the restructuring stabilizes or further erodes confidence in the project.

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What to watch

The planned December launch of the public AI inference market is the next milestone. Details on the marketplace’s operation, including the providers and models available, have been withheld until then. MEGA’s ability to deliver on that deadline, and the market’s reception, will indicate whether the restructuring has positioned the organization for its new direction.

Sources: Cointelegraph, crypto.news