Crypto news

The Ethereum Foundation (EF) has completed a multi-month restructuring phase aimed at optimizing internal processes and improving treasury management efficiency. As part of this transformation, the foundation has implemented a new structure based on five key working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operational and management support blocks have been designated.

The most significant consequence of the restructuring has been staff reduction. The EF parted ways with 54 employees, representing approximately 20% of the total team size. To mitigate the impact, the foundation offered laid-off specialists severance pay calculated as at least one month's salary for each year of service or in accordance with local mandatory minimums. Additionally, assistance is provided in finding new roles within the Ethereum ecosystem, along with a small grant for related expenses.

Situation Analysis: What Lies Behind the EF's Decision?

From my perspective, this decision is not merely a budget cut but a strategic move to consolidate resources. The Ethereum Foundation, as a key governing body of the ecosystem, is transitioning from fragmented initiatives to a more cohesive model where each cluster is responsible for a clearly defined scope of work. Reducing staff by 20% is a painful but logical step, especially amid growing competition from other L1 protocols and the need for faster adaptation to market conditions.

It is important to note that severance packages and job placement support are signs of the foundation's maturity, as it seeks to retain loyalty and expertise within the community, even when forced to part ways with people. However, investors and ETH holders should closely monitor how the new structure impacts decision-making speed and development coordination. If the cluster model proves effective, we may see accelerated upgrades and more aggressive adoption of new technologies, which would positively affect Ethereum's long-term value.