The Ethereum Foundation is reducing its workforce by 20% — the beginning of a new era of governance.
The Ethereum Foundation (EF) has completed a large-scale reorganization that lasted several months. These changes are a direct consequence of the implementation of the Mandate and the Treasury Management Policy — two key documents defining the future financial and operational management of the foundation.
Under the new structure, the EF is transitioning to a cluster management model. Five main operational areas have been identified: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. These are supplemented by operational and management support blocks. This is a step towards a more flexible and specialized architecture, where each cluster is responsible for its own area.
However, the most noticeable consequence is the reduction in staff. The foundation has parted ways with 54 employees, which accounts for approximately 20% of the total team size. Severance packages are provided for those laid off: 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.
This decision is undoubtedly painful, but given the current market conditions and the need to optimize resources, it appears logical. The Ethereum Foundation, like many major players in the crypto industry, is forced to adapt to new realities: declining transaction revenues after the transition to Proof-of-Stake and the general market slowdown require tighter control over spending.
From my perspective, such a restructuring is not a sign of weakness, but rather a sign of the ecosystem's maturation. The Ethereum Foundation is ceasing to be just a research center and is becoming a more institutionalized organization, ready for long-term management. A 20% staff reduction may be unpleasant, but it frees up resources for more targeted investments in the development of key areas. The only question is how quickly the new clusters can prove their effectiveness.