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 implementing a new treasury management policy. As part of these changes, the foundation parted ways with 54 employees, representing approximately 20% of the total team size.
New Structure: Five Key Clusters
The EF is transitioning to a cluster-based management model, comprising five working areas: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operations and management support blocks have been allocated. This structure is designed to improve resource allocation efficiency and accelerate decision-making in key areas of Ethereum ecosystem development.
Terms for Laid-off Employees
For the laid-off specialists, the EF has prepared severance packages including at least one month's salary for each year of service or the local statutory minimum. Furthermore, the foundation is assisting in finding new roles within the ecosystem and providing a small grant for related expenses. This demonstrates an effort to retain talent potential within the community, even when employees leave the payroll.
My analysis: This step indicates the maturity of the Ethereum Foundation as an organization. A 20% workforce reduction is not a sign of crisis, but a deliberate optimization aimed at eliminating bureaucratic barriers. The transition to a cluster model could significantly accelerate the implementation of key protocol improvements, especially in the context of upcoming upgrades. However, it is important for the EF to maintain a balance between efficiency and inclusivity, without alienating talented developers who may be indispensable for the long-term development of the ecosystem.