The Ethereum Foundation is undergoing a major restructuring: reducing its workforce by 20%.
The Ethereum Foundation (EF) has completed a multi-month reorganization aimed at optimizing treasury management and achieving the strategic goals outlined in the Mandate and Treasury Management Policy. As a result, the foundation parted ways with 54 employees, representing approximately 20% of its total staff.
New Structure: Five Clusters Instead of a Single Team
As part of the restructuring, the EF transitioned to a modular architecture comprising five working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operations and management support units were allocated. This model is designed to enhance flexibility and efficiency in resource allocation, particularly amid current market instability.
Severance Terms: A Soft Exit with Support
For laid-off employees, the foundation offered severance pay amounting to 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 provides assistance in finding a new role within the Ethereum ecosystem, as well as a small grant for related expenses. This demonstrates a commitment to retaining talent and loyalty even during downsizing.
Analytical Commentary: The EF's decision to reduce staff amid reorganization is a logical step given the tightening market competition and the need to improve operational efficiency. However, it is important to note that the departure of 20% of the team may temporarily slow the pace of development for key protocols, especially in Layer 1. In the long term, the new cluster structure should facilitate more targeted resource allocation, but success will depend on how quickly the EF can integrate new personnel and maintain continuity in critical projects.