The Ethereum Foundation is undergoing a major restructuring: 20% of the team is leaving the organization.
The Ethereum Foundation (EF) has completed a months-long reorganization process aimed at optimizing its internal structure and implementing a new Treasury Management Policy. As I previously anticipated, the foundation needed radical changes to improve efficiency and adapt to current market conditions.
The new organizational model includes five key working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operational activity and management support blocks have been allocated. This structure allows for clearer distribution of responsibilities and faster decision-making.
Scale of Reductions and Exit Terms
As part of the restructuring, the foundation parted ways with 54 employees, representing about 20% of the total team. This is a significant step, indicating management's determination to optimize costs and focus on priority areas. Laid-off employees are provided with compensation packages: severance pay of at least one month's salary for each year of service or the local statutory minimum, assistance in finding a new role within the Ethereum ecosystem, and a small grant for related expenses.
Such measures are not uncommon in the industry, but it is important to note that the EF aims to maintain loyalty and support former employees, which positively impacts the foundation's reputation.
Analytical Commentary: From my perspective, this decision is a timely and necessary step for the Ethereum Foundation. Reducing the workforce by 20% will free up resources for more aggressive development of key areas, such as Layer 2 scaling and improving user experience. However, it is crucial to ensure that the departure of experienced specialists does not slow down the development of critical updates. In the long term, such a restructuring could strengthen Ethereum's position as the leading platform for smart contracts, provided the foundation can effectively integrate the new clusters and maintain the pace of innovation.