The Ethereum Foundation is undergoing a major restructuring: a 20% reduction in staff and a shift to a cluster model.
The Ethereum Foundation (EF) has completed a multi-month reorganization aimed at implementing a new Mandate and Treasury Management Policy. Based on my data, this is not just an optimization but a fundamental overhaul of the foundation's operational model, reflecting a drive for greater efficiency and transparency in asset management.
New Structure: Five Clusters Instead of the Previous Hierarchy
As part of the restructuring, the EF has transitioned to a cluster system comprising five key areas: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operational and management support blocks have been allocated. In my view, this model will allow for more flexible resource allocation and faster responses to market challenges.
Staff Reduction: 54 Employees Leave the Foundation
As a result of the changes, the foundation has parted ways with 54 employees, representing approximately 20% of the total team. This is a significant reduction, but it is accompanied by a decent severance package: at least one month's salary for each year of service or the local statutory minimum, as well as assistance in finding a new role within the ecosystem and a small grant for related expenses. It is important to emphasize that the foundation aims to retain the loyalty of the laid-off specialists by offering them the opportunity to remain within the Ethereum ecosystem.
As an expert, I believe this is a strategically sound move. The Ethereum Foundation is demonstrating a willingness to make tough decisions for long-term sustainability. However, it is worth closely monitoring how the new structure will impact the pace of development and implementation of upgrades, especially amid growing competition from other blockchains. In the coming quarters, we will see whether the cluster model proves itself.