The Ethereum Foundation is undergoing a major restructuring: cutting 20% of its staff and transitioning to a cluster model.
The Ethereum Foundation (EF) has completed a multi-month reorganization aimed at optimizing treasury management and implementing a new development strategy. As a result of the structural changes, the foundation parted ways with 54 employees, representing approximately 20% of its total staff.
The new organizational structure of the EF is based on five key working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operational and management support units have been allocated. This approach is intended to enhance the efficiency of interaction between different areas and accelerate decision-making.
For laid-off employees, the EF has provided severance packages, including at least one month's salary for each year of service or the local statutory minimum. In addition to financial compensation, the foundation assists in finding new roles within the Ethereum ecosystem and offers a small grant for related expenses.
The reorganization reflects the Ethereum Foundation's desire to adapt to current market conditions and strengthen its focus on key development areas. According to management, the cluster model should ensure more flexible and coordinated project management, as well as optimize the allocation of treasury resources.
Expert opinion: The EF restructuring is a logical step in a mature market with increasing competition among L1 protocols. The 20% staff reduction and transition to a cluster model signal the foundation's drive for greater operational efficiency. However, the success of this transformation will depend on how quickly the new structure can adapt to dynamic changes in the ecosystem and maintain its ability to attract talent.