The Ethereum Foundation is undergoing a major restructuring: 20% of the team has been laid off.
The Ethereum Foundation (EF) has completed a multi-month reorganization aimed at optimizing internal processes and implementing a new Treasury Management Policy. As part of these changes, the organization officially parted ways with 54 employees, representing approximately 20% of its total staff.
The foundation's new structure now includes five key working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, separate operational and management support units have been established. This architecture is designed to enhance decision-making efficiency and concentrate resources on priority areas of ecosystem development.
For laid-off employees, the EF has prepared a severance package: the minimum payout is one month's salary for each year of service at the foundation, or the local statutory minimum, whichever is greater. Additionally, the organization provides assistance in finding a new role within the Ethereum ecosystem, as well as a small grant for related expenses. This approach reflects an effort to maintain staff loyalty and minimize reputational risks.
Analytical Commentary: A 20% staff reduction is a significant signal for the market. The Ethereum Foundation is clearly transitioning from a "growth at any cost" mode to a phase of consolidation and improved operational efficiency. Given the current macroeconomic uncertainty and the decline in fee revenue on the Ethereum network following the transition to Proof-of-Stake, such measures appear justified. However, it is crucial that the restructuring does not lead to the loss of key competencies in protocol development, especially amid increasing competition from Solana and other alternative L1 solutions.