The Ethereum Foundation has undergone a major restructuring: a 20% staff reduction and a shift to a cluster management model.
The Ethereum Foundation (EF) has completed a multi-month reorganization aimed at optimizing internal processes and improving treasury management efficiency. As part of the implementation of the new Mandate and Treasury Management Policy, the foundation has transitioned to a fundamentally different structure, comprising five working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Operational and management support blocks have also been added.
A key outcome of this restructuring is a 20% reduction in staff — the foundation parted ways with 54 employees. To mitigate the impact, EF offered laid-off specialists severance packages: at least one month's salary for each year of service or the local statutory minimum, whichever is greater. Additionally, the foundation is assisting in finding new roles within the Ethereum ecosystem and providing a small grant for related expenses.
From a long-term strategic perspective, this decision appears to be a logical step. The Ethereum Foundation, like any major project in the industry, must adapt to changing market conditions. A 20% staff reduction is not merely budget cutting but a shift toward a more focused and specialized structure. The cluster approach will allow the foundation to respond more flexibly to challenges by concentrating resources on key areas — from the protocol layer to institutional adoption.
However, it is worth noting that such changes always carry risks of losing expertise and temporary productivity declines. The question is how quickly the EF can integrate the new clusters and maintain its leadership in Ethereum's development. In my view, this is a correct but painful step that, in the long term, will strengthen the foundation's position as the ecosystem's primary stakeholder.