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 aimed at optimizing treasury management and implementing a new Mandate and Governance Policy. As a result of these changes, the foundation's structure has undergone radical transformation: instead of the previous hierarchy, five specialized working clusters are now in operation — Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer, along with separate units for operational and management support.
As part of this restructuring, the foundation parted ways with 54 employees, representing approximately 20% of the total team. For the laid-off specialists, the EF developed a severance package that 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 decision reflects the foundation's strategic move toward more efficient resource management and a focus on key areas of Ethereum ecosystem development. The creation of clusters will allow the EF to respond more flexibly to market challenges and accelerate the adoption of innovations, especially in critical areas such as network scaling and security.
As a professional analyst, I view this as a signal of the Ethereum Foundation's maturity, recognizing the need to adapt to the new realities of the crypto industry. While the staff reduction is painful, it could enhance the foundation's operational efficiency, but the key will be how the new structure impacts Ethereum's long-term development and its position among competitors amid growing pressure from alternative blockchains.