The Ethereum Foundation is undergoing a major restructuring: cutting staff by 20%
The Ethereum Foundation (EF) has completed a multi-month reorganization aimed at optimizing internal processes in line with its new Mandate and Treasury Management Policy. As a result, 54 employees have left the foundation, representing approximately 20% of the entire team.
The new EF structure now includes five key working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, separate operational and management support units have been established. According to my data, this decision is driven by the need to increase efficiency and adapt to rapidly changing market conditions.
For the laid-off employees, the foundation has offered severance packages amounting to at least one month's salary for each year of service at the organization, or the local statutory minimum, whichever is higher. In addition to financial compensation, the EF is providing assistance in finding new roles within the Ethereum ecosystem and offering a small grant for related expenses.
It is worth noting that such steps are rare for major crypto funds, which traditionally strive to maintain a talent pool. However, the current market situation, including regulatory pressure and the need for tighter cost control, is forcing even organizations like the EF to reconsider their operational model.
My analysis: This restructuring is not merely a cost-cutting measure but a strategic move aimed at consolidating resources around priority areas. The departure of 20% of the team may temporarily slow down some initiatives, but in the long term, it will enhance the foundation's flexibility and its ability to compete with younger, more aggressive projects. The market will perceive this as a sign of the Ethereum Foundation's maturity, ready to make tough decisions for the sustainability of the ecosystem.