Crypto news

The Ethereum Foundation (EF) has completed a multi-month reorganization aimed at optimizing internal processes and improving treasury management efficiency. As part of the implementation of the new Mandate and Treasury Management Policy, the foundation has introduced 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.

A key consequence of these changes has been a reduction in staff by 54 employees, representing approximately 20% of the total team. For the laid-off specialists, the foundation offered severance pay calculated as at least one month's salary for each year of service or the local statutory minimum, whichever is greater. In addition to financial compensation, the EF is providing assistance in finding a new role within the Ethereum ecosystem and offering a small grant for related expenses.

This restructuring is not merely about cost optimization but is a strategic move. The transition to a cluster model allows for more flexible responses to market challenges and focuses resources on key areas: from the base protocol to institutional engagement. This is particularly important amid growing competition from other blockchain networks and the need to accelerate the implementation of upgrades, such as second-layer protocols and scalability improvements.

My analysis: A 20% reduction is a painful but necessary step for a mature organization that must demonstrate not only technological leadership but also financial discipline. However, the success of the new model will depend on how quickly the laid-off talent can be reintegrated into the ecosystem to avoid losing critical expertise. The Ethereum Foundation is clearly betting on the decentralization of not only technology but also governance, which in the long term could strengthen community trust.