The Ethereum Foundation is reducing its workforce by 20%: a new structure and strategic shift
The Ethereum Foundation (EF) has completed a large-scale reorganization that lasted several months. This is not just a reshuffling of personnel, but the implementation of a new Mandate and Treasury Management Policy. As a result, 54 employees left the foundation — approximately 20% of the entire team. Those departing are provided with severance pay: at least one month's salary for each year of service or the local statutory minimum, as well as assistance with finding employment within the ecosystem and a small grant for related expenses.
The new EF structure now includes five working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, blocks for operations and management support have been allocated. This approach indicates a shift from fragmented initiatives to a more cohesive and professional management model. The foundation is clearly striving to increase efficiency and focus on key areas of Ethereum's development.
A 20% reduction in staff is a significant step, but it may be justified in the long term. The Ethereum Foundation, like many other organizations in the crypto industry, is forced to adapt to new market realities. The departure of part of the team is not only a loss but also an opportunity to attract fresh talent and reallocate resources toward the most promising projects.
Analytical Perspective
From my point of view, this decision is a sign of Ethereum's maturity as an ecosystem. The foundation is no longer trying to be "everything to everyone" but is concentrating on strategic priorities. However, it is important that the cuts do not affect key areas such as protocol development and community support. In the coming months, we will see how effectively the new structure handles the challenges facing the second-largest cryptocurrency by market capitalization.