The Ethereum Foundation is undergoing a major restructuring: a 20% staff reduction and a transition to a new cluster model.
The Ethereum Foundation (EF) has officially completed a large-scale reorganization that lasted several months. The key goal of these changes was the implementation of a new Mandate and Treasury Management Policy. As a result of the restructuring, the organization's staff was reduced by 54 people, which accounts for approximately 20% of the total team size.
The new organizational structure of the EF is now based on five specialized 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 improve the efficiency of resource allocation and focus efforts on key areas of Ethereum ecosystem development.
For laid-off employees, the foundation has developed a compensation package. It includes severance pay of at least one month's salary for each year of service at the organization or the local statutory minimum, as well as assistance in finding a new role within the Ethereum ecosystem and a small grant for related expenses. This reflects the EF's desire to maintain the loyalty of former team members and minimize negative consequences for the community.
Analytical Commentary: This move by the Ethereum Foundation is not merely a cost-cutting measure but a strategic restructuring aimed at adapting to new market challenges. The transition to a cluster model could significantly accelerate decision-making and increase the foundation's flexibility, which is critical amid growing competition from other blockchain platforms. However, the loss of 20% of the team, even with generous compensation, carries risks of losing institutional memory and slowing down some long-term initiatives.