The Ethereum Foundation (EF) is undergoing a major restructuring: reducing its workforce by 20%.
The Ethereum Foundation (EF) has completed a multi-month reorganization process aimed at optimizing operations and implementing a new treasury management policy. As a result of these changes, the foundation parted ways with 54 employees, representing approximately 20% of its total staff.
New Management Structure
As part of the restructuring, the EF has transitioned to a cluster model comprising five main work areas: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operational and management support blocks have been allocated. In my opinion, this structure is intended to improve coordination efficiency across the foundation's key areas of activity.
Terms for Laid-Off Employees
For those leaving the EF team, severance pay is provided: at least one month's salary for each year of service or the local statutory minimum, whichever is greater. Additionally, the foundation offers assistance in finding a new role within the Ethereum ecosystem and a small grant for related expenses.
A 20% staff reduction is a significant step, which likely reflects the EF's desire for more efficient resource utilization. In the context of a volatile crypto market and intensifying competition among blockchain platforms, such a maneuver may be justified, although it raises questions about Ethereum's long-term development strategy.
My analysis: Such personnel changes are not merely about budget savings but signal a shift in priorities. The Ethereum Foundation is clearly betting on a more flexible and decentralized management model, which could strengthen the network's position in the race for leadership in smart contracts and DeFi.