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 reorganization process aimed at optimizing operational efficiency under its Mandate and Treasury Management Policy. The key outcome is the creation of a fundamentally new structure based on five working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operations and management support blocks have been allocated.
As part of this transformation, the foundation parted ways with 54 employees, representing approximately 20% of its total staff. For the laid-off specialists, EF developed a compensation package including severance pay of at least one month's salary for each year of service (or the local statutory minimum), assistance in finding a new role within the ecosystem, and a small grant for related expenses.
This step indicates the Ethereum Foundation's drive toward clearer functional specialization and improved manageability. The cluster model is designed to accelerate decision-making and reduce operational costs, which is critically important given the current market conditions and increasing competition from other blockchain platforms.
My Expert Analysis
A 20% staff reduction is not merely a cost-saving measure but a signal of deep internal process restructuring. I see this as an attempt by EF to shed bureaucratic layers and focus on key protocol development areas. However, the success of this restructuring will depend on how quickly the new clusters can establish effective collaboration. If this does not happen, we risk seeing a temporary slowdown in the pace of Ethereum network upgrades, which could negatively impact investor sentiment in the short term.