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, which involved significant staff reductions and a transition to a new operational structure. These changes are a direct consequence of the implementation of the Mandate and Treasury Management Policy adopted earlier.
The key outcome of the restructuring was the dismissal of 54 employees, representing approximately 20% of the total team size. For the laid-off employees, the foundation developed a compensation package, including severance pay of at least one month's salary for each full year of service at the organization, or the local statutory minimum, whichever is higher. In addition to financial compensation, the EF provided assistance in finding new roles within the Ethereum ecosystem, as well as a small grant to cover related expenses.
The foundation's new structure is fundamentally different from the previous one. Instead of the traditional hierarchical division, the Ethereum Foundation is transitioning to a cluster model. Work will now be organized into five key clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, separate units have been allocated for operational and administrative support.
This step, in my opinion, indicates the EF leadership's drive for greater efficiency and decentralized management. The division into functional clusters should enable faster responses to market challenges and more flexible resource allocation, which is critical for maintaining Ethereum's leadership in a highly competitive environment. However, such a significant staff reduction may temporarily slow the pace of development in certain areas until the new structure begins to operate at full capacity.