The Ethereum Foundation is undergoing a major restructuring: reducing its workforce by 20%.
The Ethereum Foundation (EF) has completed a multi-month reorganization process aimed at optimizing treasury management and implementing a new Mandate and Governance Policy. As a result of these changes, 54 employees have left the foundation, representing approximately 20% of the total team size.
New Structure: Five Key Clusters
The updated organizational model of the EF includes five working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, separate units have been allocated for operational and management support. This structure is designed to improve coordination efficiency and accelerate decision-making in key areas of Ethereum ecosystem development.
Departure Terms and Support for Laid-off Employees
For laid-off employees, the EF has offered severance pay amounting to at least one month's salary for each year of service at the foundation, or the local mandatory minimum—whichever is greater. Additionally, assistance is provided in finding a new role within the Ethereum ecosystem, along with a small grant for related expenses. This reflects the foundation's effort to maintain loyalty and connections with former team members, who may continue to contribute to the network's development.
Analytical Commentary
A 20% staff reduction is a significant step, highlighting the Ethereum Foundation's shift towards a more pragmatic and decentralized governance model. In my view, this is a logical decision amid growing competition from other blockchain platforms and the need to respond more flexibly to market changes. However, it is worth closely monitoring how the departure of key specialists will impact the pace of protocol upgrade development, especially in the context of upcoming upgrades.