Tuesday, January, 21, 2025

Ethereum Foundation Cuts 20% of Staff in Major Organizational Restructuring

Ethereum Foundation
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  • Ethereum Foundation completed a major restructuring and reduced its workforce by around 20%.
  • The organization introduced five core work clusters to strengthen Ethereum’s long-term development.
  • Fifty-four departing employees will receive severance packages and transition support.

The Ethereum Foundation has completed a major organizational restructuring aimed at strengthening its long-term strategy and improving execution across key areas of the Ethereum ecosystem. The changes conclude a months-long review process linked to the foundation’s mandate and treasury management plans.

As part of the overhaul, the foundation reduced its workforce by 54 employees, representing roughly 20% of its staff. While the move marks a significant change, the organization said the new structure positions it to focus on critical priorities that support Ethereum’s future growth and resilience.

The Ethereum Foundation now operates through five primary clusters: protocol layer, access layer, user layer, community layer, and institutional layer. Additional teams will handle operations and management functions.

Ethereum Foundation Outlines Four-Layer Strategy

The protocol layer remains responsible for Ethereum’s core technology. This group focuses on scaling the network while protecting decentralization, privacy, security, and resistance to censorship. Its work includes supporting network upgrades, reducing technical complexity, improving transaction processes, and advancing research areas such as zkEVM technology, post-quantum security, and Layer-1 privacy.

The access layer focuses on how users and software interact with Ethereum. The team works to ensure people can access blockchain data, complete transactions, verify information, and maintain control of digital assets without depending entirely on centralized service providers.

Source: Ethereum Foundation blog

The foundation wants decentralized alternatives to remain available as blockchain adoption grows.The user layer focuses on user needs and adoption challenges to guide Ethereum’s development. The community layer strengthens ties with developers, researchers, and the broader Ethereum ecosystem.

Ethereum Foundation Builds New Industry Connections

Foundation leaders view these connections as important for preserving Ethereum’s mission and expanding awareness of its long-term value beyond financial applications. The institutional layer will work with financial firms, businesses, governments, universities, and nonprofit organizations exploring Ethereum-based solutions.

The group plans to support adoption through educational materials, best-practice frameworks, standards development, and direct collaboration. The foundation said institutions increasingly seek technologies that improve transparency, security, data ownership, and efficiency.

The Ethereum Foundation will provide severance packages, career support, and transition grants for departing employees. The changes aim to strengthen the foundation’s focus on Ethereum’s long-term development while preserving its core principles.

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