The Ethereum Foundation is undergoing a major restructuring: a 20% staff reduction and a transition to a new governance model.
The Ethereum Foundation (EF) has officially completed a multi-month reorganization aimed at optimizing internal processes and implementing a new Treasury Management Policy. As a result of these changes, the foundation parted ways with 54 employees, representing approximately 20% of the total team.
The new organizational structure now includes five key working clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Additionally, operational and management support blocks have been formed. In my assessment, this division should improve coordination efficiency among the various development directions of the Ethereum ecosystem and eliminate duplication of functions.
For the laid-off employees, the EF has provided a compensation package: severance pay of at least one month's salary for each year of service or the local statutory minimum, whichever is greater. Additionally, the foundation assists in finding a new role within the ecosystem and allocates a small grant for related expenses. This demonstrates a commitment to retaining talent potential and preventing the loss of valuable specialists for the community.
From my perspective, this reorganization is a timely step. The Ethereum Foundation has operated in a relatively loose, decentralized manner for decades, but with the growth in scale and competition from other blockchains (e.g., Solana and Avalanche), stricter resource management is required. A 20% staff reduction is a painful but necessary process to enhance operational efficiency. The only question is how quickly the new structure can adapt to market challenges and whether this will lead to a temporary slowdown in the development of key protocol updates.