The Ethereum Foundation reduces its workforce by 20%: restructuring and new horizons
The Ethereum Foundation (EF) has completed a large-scale reorganization that lasted several months. This move is part of the implementation of a new Mandate and Treasury Management Policy aimed at increasing efficiency and focusing on key areas of ecosystem development.
New Structure: Five Clusters Instead of Chaos
As a result of the changes, the EF has transitioned to a modular organization consisting of five working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operations and management support units have been allocated. This structure is designed to ensure transparency, accountability, and flexibility in decision-making.
Personnel Changes: Layoffs with Severance Packages
As part of the restructuring, the foundation parted ways with 54 employees, representing approximately 20% of the entire team. To mitigate the impact, the EF offered laid-off employees severance pay: at least one month's salary for each year worked at the foundation or the local statutory minimum, whichever is greater. Additionally, employees were provided with assistance in finding a new role within the Ethereum ecosystem and a small grant for related expenses.
Analysis and Outlook
This decision is not merely a cost-cutting measure but a deliberate step toward resource optimization in a mature market. The Ethereum Foundation demonstrates that even non-profit organizations in the crypto space must be prepared for tough management decisions. Personally, I see this as a positive signal: the EF is focusing on what truly matters for the network's development—the protocol, user accessibility, and institutional adoption. In the long term, this could strengthen Ethereum's position as the leading platform for decentralized applications.