The Ethereum Foundation is undergoing a major restructuring: cutting 20% of its staff and transitioning to a cluster model.
The Ethereum Foundation (EF), the key non-profit organization behind the development of the Ethereum network, has completed a multi-month restructuring process. These changes are part of the implementation of an updated treasury management policy and the foundation's overall strategic mandate. As a result of the internal reorganization, the EF's staff has been reduced by 54 employees, representing approximately 20% of the total team size.
In the new structure, the EF has abandoned the traditional hierarchy in favor of a flexible system of five working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operational and management support units have been established. This architecture is designed to enhance specialization and decision-making speed in key areas of ecosystem development.
For the laid-off employees, the foundation has developed a severance package. It includes a payment of at least one month's salary for each year worked, or the local statutory minimum, whichever is higher. Furthermore, the EF provides assistance in finding new roles within the Ethereum ecosystem and offers a small grant to cover related expenses.
Cryptalist Analysis: This move is not merely a cost-cutting measure but a signal of the Ethereum Foundation's transition to a more pragmatic and decentralized management model. The formation of clusters focused on specific stack layers (from protocol to institutional adoption) indicates an effort to prepare the groundwork for the next phase of scaling. Amid growing competition from L1 solutions and regulatory pressure, the EF needs not only to optimize resources but also to clearly define its priorities. Losing 20% of the team is a painful but likely necessary step to improve efficiency in the long term. The market will closely watch how the new structure impacts the development pace of key upgrades, such as Pectra.