The Ethereum Foundation is undergoing a major restructuring: a 20% staff reduction and a shift to a cluster model.
The Ethereum Foundation (EF) has completed a multi-month reorganization process aimed at optimizing treasury management and implementing a new strategy. As part of these changes, the foundation parted ways with 54 employees, representing approximately 20% of its total staff.
New Structure: Five Key Clusters
The reorganization led to the formation of five working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operational and management support blocks were established. This structure, in my view, is designed to create a clearer division of responsibilities and improve efficiency amid growing competition from other blockchain ecosystems.
Departure Terms for Employees
For employees leaving the organization, the EF offered severance packages. These include at least one month's salary for each year of service or the local statutory minimum, assistance in finding a new role within the Ethereum ecosystem, and a small grant for related expenses. This demonstrates the foundation's commitment to maintaining loyalty and preserving ties with former team members.
Analytical Conclusion: The 20% staff reduction signals that the Ethereum Foundation is transitioning to a more pragmatic management model, focusing on key development areas. However, given the current market conditions and regulatory pressure, such measures may only be the first step in a deeper optimization process. The market is likely to perceive this as a positive signal that the EF is striving for greater financial discipline and efficiency.