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 its internal structure and treasury management. Under the new approach, the foundation has transitioned to a cluster model comprising five key work areas: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operational and management support blocks have been allocated.
The most notable consequence of the restructuring is staff reduction. The foundation parted ways with 54 employees, representing approximately 20% of the entire team. Laid-off specialists are provided with severance packages: at least one month's salary for each year of service at the organization or the local statutory minimum, along with assistance in finding a new role within the Ethereum ecosystem and a small grant for related expenses.
This reorganization is not merely a cost-cutting measure but a strategic step toward improving efficiency and focusing on key tasks. Amid growing competition from other blockchain platforms and the need for network scaling, the Ethereum Foundation is compelled to reassess its priorities. The cluster model allows for more flexible resource allocation and faster responses to industry changes.
Analytical commentary: A 20% staff reduction sends a strong signal to the market. The Ethereum Foundation is betting on quality over quantity, transitioning from bloated bureaucracy to a more dynamic structure. However, it is crucial that these changes do not lead to the loss of key experts, especially in Layer 2 solutions and security. If the foundation can retain its intellectual core and attract new talent through grants, the restructuring could become a catalyst for Ethereum's next leap. Otherwise, it risks slowing development at a critical juncture.