The Ethereum Foundation is undergoing a major restructuring: reducing staff by 20% and transitioning to a cluster model.
The Ethereum Foundation (EF) has completed a large-scale internal reorganization that lasted several months. This move is a direct consequence of the implementation of the new Mandate and Treasury governance policies. Instead of the previous structure, the foundation now operates with five key working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operational and management support units have been allocated.
As part of this transformation, the EF parted ways with 54 employees, which constitutes approximately 20% of the total team size. A severance package is provided for those laid off: a payment of at least one month's salary for each year worked at the foundation or the local statutory minimum (whichever is greater). Additionally, the foundation assists in finding a new role within the Ethereum ecosystem and provides a small grant to cover related expenses.
Analytical Commentary: This reorganization is not merely a cost-cutting measure but a strategic signal. The EF is transitioning from a "general-purpose team" model to a clearer hierarchy focused on specific technological and market tasks. This could improve coordination efficiency between developers and validators, but it also creates risks of losing key specialists whose expertise was critical to the network's stability. The market currently assesses this move as neutral to positive, but investors should closely monitor how the new structure impacts the pace of update implementation and the attraction of institutional capital.