The Ethereum Foundation is undergoing a major restructuring, cutting its workforce by 20%.
The Ethereum Foundation (EF) has completed a multi-month reorganization process aimed at optimizing its internal structure and strengthening treasury management. As part of the implementation of the Treasury Management Mandate and Policy, the foundation has transitioned to a new model that includes five key working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Separate blocks for operational and management support have also been allocated.
Details of Layoffs and Support Measures
The most notable consequence of the restructuring is a reduction in staff by 54 employees, representing approximately 20% of the total team size. Severance for those laid off includes 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 step indicates EF's desire to improve operational efficiency and focus on key areas of Ethereum ecosystem development. The reorganization aims to create a clearer distribution of responsibilities and resources across different interaction levels—from the protocol to the community and institutional partners.
My analysis: A 20% staff reduction is a significant signal for the market. The Ethereum Foundation is demonstrating a willingness to take tough measures to optimize costs and enhance operational efficiency. In the long term, this could strengthen Ethereum's position as a leading platform for smart contracts, but in the short term, it raises questions about retaining talent and the pace of development for key upgrades.