The Ethereum Foundation is cutting its staff by 20%: a new management strategy and treasury reform
The Ethereum Foundation (EF) has completed a large-scale reorganization that lasted several months. This step is part of the implementation of the new Mandate and Treasury Management Policy. As a result of the changes, the organization's staff was reduced by 54 employees — approximately 20% of the total team size.
The new EF structure now includes five key working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Separate blocks for operational activities and management support have also been allocated. This restructuring aims to improve efficiency and transparency in resource management.
For laid-off employees, the foundation has provided severance pay: 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 Ethereum ecosystem and a small grant for related expenses. This demonstrates a commitment to maintaining loyalty and supporting former team members during the transition period.
Analytical Commentary: A 20% staff reduction is not just optimization but a signal of a shift toward stricter financial discipline. The Ethereum Foundation is clearly preparing for long-term sustainability, focusing on key development areas. However, it is worth closely monitoring how this will affect the pace of development and implementation of updates on the Ethereum network. Amid growing competition from other blockchains, internal restructuring could become either an advantage or a bottleneck.