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 as part of implementing a new Treasury Management Strategy and Foundation Mandate. As a result of the structural changes, the organization's staff was reduced by 54 employees, representing approximately 20% of the total team size.
As part of the reorganization, the EF introduced a fundamentally new governance architecture, dividing its activities into five key working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operations and management support blocks were allocated. This approach is intended to improve resource allocation efficiency and accelerate decision-making.
For the laid-off employees, the foundation developed a compensation package including severance pay of 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.
Analytical Commentary: This move by the EF is not merely cost optimization, but a strategic step aimed at increasing the organization's adaptability in a rapidly changing market. The transition to a cluster model may signal a deeper division of responsibilities between fundamental research, infrastructure, and institutional engagement. However, a 20% reduction is a significant signal to the market, which may raise questions about the foundation's long-term sustainability and priorities.