The Ethereum Foundation has reduced its staff by 20%: a new structure and strategic focus
As part of a long-planned reorganization, the Ethereum Foundation (EF) has completed a major optimization of its team and internal processes. The key outcome is a reduction of 54 employees, representing approximately 20% of the organization's total headcount.
New Governance Architecture
The restructuring was carried out in the context of implementing an updated Treasury Management Policy and the so-called "Mandate." Instead of the previous, more ambiguous structure, the EF now relies on five clearly defined working clusters. These include the Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operational and management support units have been established.
In my view, this division indicates the Foundation's desire to move from reactive management to proactive and more professional administration of the ecosystem. This is particularly important amid the growing institutional integration of Ethereum.
Terms for Laid-Off Employees
For employees affected by the reduction, the EF has offered a severance package. This includes a payment of at least one month's salary for each year of service at the foundation (or the local statutory minimum, if higher). In addition to financial compensation, laid-off employees receive assistance in finding a new role within the Ethereum ecosystem, as well as a small grant for related expenses.
This approach is a rare case in the crypto industry, where layoffs often occur without transparent terms. It strengthens the EF's reputation as a responsible employer, even during tough decisions.
Analytical Commentary: A 20% headcount reduction is not panic, but deliberate optimization. The Ethereum Foundation is transitioning from an "incubator fund" model to an "ecosystem regulator fund" model. The creation of clusters, especially the Institutional Layer, directly indicates preparation for closer interaction with traditional finance and regulators. For long-term ETH holders, this is a positive signal: the organization is becoming more efficient and focused.