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 internal processes and implementing a new Treasury Management Policy. As part of these changes, the foundation reduced its workforce by 54 employees, representing approximately 20% of the total team size.
The new EF organizational structure now includes five working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operations and management support units have been designated. In my view, this cluster model is intended to enhance flexibility and decision-making speed, especially amid growing competition from other blockchain ecosystems.
Employees leaving the foundation were offered severance packages: at least one month's salary for each year of service 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 reflects EF's effort to maintain loyalty and support talented professionals even during a period of downsizing.
Analytical Commentary: The Ethereum Foundation's restructuring is not merely a workforce reduction but a strategic move toward more decentralized and efficient governance. However, it is worth noting that losing 20% of the team may temporarily slow down some initiatives, particularly in protocol development. In the long term, if the cluster model truly improves coordination and resource allocation, it could strengthen Ethereum's position as a leader among smart contract platforms.