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 aimed at optimizing internal processes and improving treasury management efficiency. As part of the new strategy, the foundation has implemented a Mandate and Treasury Management Policy that fundamentally changes the organization's structure.
As a result of the restructuring, the EF parted ways with 54 employees, representing approximately 20% of the total team. Those laid off have been offered severance packages, including at least one month's salary for each year of service or the local statutory minimum, as well as assistance in finding a new role within the ecosystem and a small grant for related expenses.
The foundation's new structure now includes five working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operations and management support units have been designated. This model is intended to improve coordination between the foundation's various areas of activity and accelerate decision-making.
The Ethereum Foundation reorganization is not merely a staff reduction but a strategic move aimed at improving resource management efficiency. Amid growing competition from other blockchain platforms and the need for rapid scaling, the EF must act more flexibly and purposefully. The cluster model will likely allow the foundation to better focus on key development areas, such as Layer 2 solutions and institutional adoption. However, as practice shows, any organizational changes carry risks of losing valuable personnel and temporary productivity declines. It will be interesting to observe how the new structure impacts the pace of upgrades and the overall dynamics of the Ethereum ecosystem's development in the coming quarters.