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 aimed at optimizing treasury management and implementing a new development strategy. As a result of the restructuring, the foundation parted ways with 54 employees, representing approximately 20% of its total staff.
New Structure: Five Working Clusters
As part of the reform, the EF transitioned from a traditional hierarchical model to a cluster-based organization. The new structure includes five key areas: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operational and management support blocks have been formed.
Severance Terms and Support
For employees leaving the foundation, severance pay is provided: at least one month's salary for each year of service or the local statutory minimum, depending on jurisdiction. The EF also offered assistance in finding a new role within the Ethereum ecosystem and a small grant for related expenses.
My analysis: Such a restructuring is a logical step for a mature project seeking to increase efficiency. The 20% staff reduction indicates a shift from expansive growth to more targeted resource allocation. The cluster model, focused on specific layers of the ecosystem, will allow the EF to respond more quickly to challenges such as Layer 2 scaling and institutional adoption. However, it is important that the cuts do not affect key competencies in research and protocol development — these remain the foundation's main asset.