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 internal reorganization aimed at optimizing treasury management and implementing a new Mandate and Governance Policy. As a result of these changes, the foundation parted ways with 54 employees, representing approximately 20% of the total team.
New Structure: Five Key Clusters
Instead of the previous management model, the EF is transitioning to a cluster architecture. The foundation's work will now be built around five main blocks: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operational and management support blocks have been allocated.
For laid-off employees, the foundation has provided severance packages that include at least one month's salary for each year of service or the local mandatory minimum, as well as assistance in finding a new role within the ecosystem and a small grant for related expenses.
Analytical Commentary
This kind of restructuring is not just about cost-cutting, but a strategic move. The Ethereum Foundation, as a key coordinator for the development of the second-largest cryptocurrency by market capitalization, is forced to adapt to new market realities and community demands. The shift to a cluster model indicates a desire to improve management efficiency and focus on specific areas of ecosystem development. However, it is worth noting that the loss of 20% of the team may temporarily slow down some initiatives, especially amid growing competition from other L1 platforms.