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, which was part of implementing a new treasury management policy and strategic mandate. The result of these changes is a reduction of 54 employees — approximately 20% of the total team size. This decisive step indicates a fundamental reassessment of management approaches for one of the key organizations in the Ethereum ecosystem.
New Structure: Five Clusters Instead of Traditional Hierarchy
Instead of the previous linear structure, the EF is transitioning to a model based on five working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. These are supplemented by operational and management support blocks. This architecture is intended to increase flexibility and speed of decision-making, which is critical in a rapidly changing market and amid growing competition from other L1 networks.
Departure Terms and Support for Former Employees
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 — whichever is greater. Additionally, the EF assists in finding a new role within the Ethereum ecosystem and provides a small grant for related expenses. This approach demonstrates a desire to retain talent within the community, even if people leave the foundation itself.
In my opinion, this reorganization is not merely cost optimization but a strategic maneuver. The Ethereum Foundation recognizes that to maintain leadership in the smart contract space, it must adapt to new realities: increased competition, stricter regulation, and the need for closer engagement with institutional investors. The cluster model, particularly the Institutional Layer, directly indicates a priority on working with major players. If the EF can effectively implement this strategy, we may see a new phase of development for the Ethereum ecosystem, focused not only on developers but also on the business sector.