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, which was a logical continuation of the implementation of the Mandate and Treasury Management Policy. As part of this process, the foundation transitioned to a fundamentally new structure consisting of five working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operational and management support blocks have been allocated.
The key consequence of the restructuring was a reduction in staff by 54 employees — approximately 20% of the total team size. Laid-off employees have been offered severance packages: at least one month's salary for each year of service at the foundation or the local statutory minimum, as well as assistance in finding a new role within the Ethereum ecosystem and a small grant for related expenses.
This reorganization indicates the EF's desire to optimize operational efficiency and clearly distribute responsibilities across different development areas. The cluster model is likely intended to increase decision-making speed and reduce bureaucratic costs, which is critical for maintaining Ethereum's competitiveness amid growing pressure from other blockchain platforms.
From a market analysis perspective, this is a positive signal for long-term ETH holders. Reducing the foundation's expenses while maintaining a focus on key technological areas — Protocol Layer and Access Layer — could strengthen investor confidence in Ethereum's ability to adapt to new challenges. However, it is important to note that the loss of 20% of talented specialists carries certain risks for the ecosystem's innovation potential. In the coming quarters, we will closely monitor how the new structure impacts the pace of upgrades and the development of L2 solutions.