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 completed a multi-month phase of organizational restructuring aimed at optimizing treasury management and implementing a strategic mandate. As part of the restructuring, the foundation has officially parted ways with 54 employees, representing approximately one-fifth of the entire team — about 20%.
The new EF structure is now based on five key working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operational activity and management support units have been allocated. In my assessment, this division indicates the foundation's desire to increase efficiency amid growing competition between L2 solutions and the need for clearer coordination with ecosystem projects.
For laid-off employees, the EF has developed a severance package. Compensation includes at least one month's salary for each year worked at the foundation or the local statutory minimum (whichever is greater). Additionally, the foundation provides assistance in finding a new role within the Ethereum ecosystem and a small grant for related expenses. In my view, this approach demonstrates responsible treatment of personnel even during a period of tough decisions.
It is worth noting that the reorganization coincided with a period of active community debates about the future governance of Ethereum and the allocation of treasury resources. A 20% staff reduction is not merely a cost-cutting measure, but a signal of a transition to a more flexible and modular structure, where each cluster will be responsible for a specific segment of the ecosystem.
My expert commentary: This step by the Ethereum Foundation is not a crisis measure, but a timely adaptation to new market realities. Reducing 20% of staff while maintaining support for laid-off employees and transitioning to a cluster model is a sign of organizational maturity. However, the success of the restructuring will depend on how quickly the new clusters can establish effective interaction and avoid losing key competencies. In the long term, this could strengthen Ethereum's position as a platform, but in the short term, some turbulence in management processes is possible.