The Ethereum Foundation is reducing its workforce by 20%: strategic restructuring and new clusters
The Ethereum Foundation (EF) has completed a large-scale reorganization that lasted several months. These changes are part of the implementation of the Treasury Mandate and Governance Policy—a document defining the foundation's financial strategy and operational model. As a result of the restructuring, the staff was reduced by 54 people, which accounts for approximately 20% of the total team size.
Five New Clusters and Personnel Decisions
The new EF structure includes five working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Separate units for operational and management support were also allocated. This architecture is designed to improve coordination efficiency and accelerate decision-making in key areas of Ethereum ecosystem development.
For laid-off employees, the foundation has provided severance pay: at least one month's salary for each year of service or the local statutory minimum—whichever is greater. Additionally, EF offers assistance in finding a new role within the Ethereum ecosystem and a small grant for related expenses. This reflects an effort to maintain loyalty and retain talent within the community, even if their current position at the foundation has been eliminated.
Analytical Assessment
A 20% staff reduction is a significant but expected step amid tightening financial discipline and a shift toward more decentralized governance models. The Ethereum Foundation demonstrates readiness to adapt to new market realities, where capital efficiency becomes a critical factor. In my professional opinion, such a restructuring may temporarily slow down some initiatives, but in the long term, it will strengthen Ethereum's position as a platform capable of competing for institutional and retail liquidity flows.