The Ethereum Foundation reduces its workforce by 20%: restructuring as part of a new treasury management strategy
As part of a large-scale reorganization, the Ethereum Foundation (EF) has completed a staff optimization process, reducing its workforce by 20%. This decision is part of the implementation of a new Mandate and Treasury Management Policy aimed at increasing the organization's efficiency and strategic focus.
As a result of the changes, the foundation parted ways with 54 employees. Each of them was offered a severance package, including at least one month's salary for each year of service or the local statutory minimum, as well as assistance in finding a new role within the ecosystem and a small grant for related expenses. This measure demonstrates the EF's commitment to maintaining loyalty and supporting former colleagues during the transition period.
The foundation's new structure includes five working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer, along with operations and management support units. This division is intended to ensure a clearer distribution of responsibilities and accelerate decision-making, especially in critically important areas such as core protocol development and engagement with institutional market participants.
My Professional Perspective
A 20% staff reduction is not just optimization but a signal of the Ethereum Foundation's shift towards more pragmatic resource management. Amid growing competition from other blockchain platforms and the need to maintain development momentum, such measures may be justified. However, the key challenge will remain preserving the innovative spirit and attracting top talent while reducing internal staff. The success of this restructuring will depend on how effectively the new clusters can coordinate work with external developers and the community.