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 improving treasury management efficiency. As part of the implementation of the new Mandate and Treasury Management Policy, the foundation is transitioning to a cluster architecture consisting of five key working areas: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operational and management support blocks have been allocated.
The most significant consequence of these changes has been a reduction in staff: the foundation parted ways with 54 employees, representing approximately 20% of the total team. To mitigate the impact of the layoffs, EF offered affected employees severance packages, including at least one month's salary for each year of service at the foundation 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 decision reflects the Ethereum Foundation's drive toward more targeted and efficient resource allocation. The cluster model, in my opinion, will allow the foundation to respond more quickly to market challenges and manage investments in key areas, such as the protocol layer and institutional adoption, with greater flexibility. However, cutting 20% of staff is a serious signal, indicating that even the largest ecosystem foundations are forced to adapt to current market conditions by optimizing their operational costs.
As a professional analyst, I assess this move as necessary for Ethereum's long-term sustainability. On one hand, it may temporarily weaken some internal competencies, but on the other, it creates a clearer structure for scaling and attracting new talent, focusing on the most critical tasks for the ecosystem.