Ethereum Foundation Cuts 54 Jobs, Reduces Workforce by 20%

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• Ethereum Foundation eliminated 54 positions, representing approximately 20% of its workforce.
• The nonprofit adopted a seven-cluster operating model to improve efficiency and execution.
• The restructuring follows the implementation of the Foundation’s Mandate and Treasury Management Policy.
• Five clusters will oversee protocol development, ecosystem growth, user access, and institutional engagement.
• Affected employees will receive severance packages and transition support.

Ethereum Foundation Restructures Operations, Cuts 20% of Workforce

The Ethereum Foundation (EF) has reduced its workforce by 54 employees, representing roughly 20% of its staff, as part of a major organizational restructuring designed to align the nonprofit with Ethereum’s long-term development goals.

The changes conclude a months-long internal review that followed the implementation of the Foundation’s Mandate and Treasury Management Policy. According to the organization, the restructuring is intended to create a more focused and efficient operating model capable of supporting Ethereum’s evolving technical, social, and institutional needs.

Ethereum Foundation Adopts Seven-Cluster Model

As part of the overhaul, the Foundation has adopted a new seven-cluster structure that divides responsibilities across key areas of the Ethereum ecosystem. Five clusters will focus on protocol development, ecosystem growth, user access, community participation, and institutional engagement, while two additional clusters will manage organizational operations and internal support functions.

The Protocol cluster will continue work on Ethereum’s core infrastructure, including scalability improvements, privacy-preserving technologies, zero-knowledge systems, post-quantum cryptography research, and zkEVM-related initiatives. Other clusters will focus on enhancing the user experience, encouraging ecosystem participation, analyzing adoption trends, and strengthening collaboration with developers, researchers, and community contributors.

The Foundation also plans to expand engagement with governments, universities, financial institutions, and enterprises as Ethereum adoption grows across decentralized finance, tokenization, and real-world asset applications.

Employees affected by the workforce reduction will receive severance packages and transition assistance. The Foundation stated that departing staff members will receive support in finding opportunities across the broader Ethereum ecosystem, along with grants that can be used for career development and professional training.

The restructuring reflects the Foundation’s effort to adapt its role as Ethereum matures into a global blockchain network supported by a decentralized and increasingly independent developer community. By consolidating operations and clarifying responsibilities, the organization aims to improve execution while maintaining its long-term commitment to Ethereum’s open-source development.

Additional information regarding the responsibilities and leadership of each newly established cluster is expected to be released in the coming weeks.

Recently, Meanwhile, the launch of Ethlabs, a new Ethereum-focused research organization backed by Bitmine, SharpLink, and other ecosystem participants, highlights continued investment in Ethereum’s long-term development despite ongoing leadership transitions.

The restructuring comes amid a period of broader change within Ethereum’s ecosystem. On June 20, Ethereum Foundation co-executive director Hsiao-Wei Wang announced her resignation, marking the departure of the eight senior leaders from the Foundation in the past five months. A former Ethereum Foundation contributor warned of potential funding challenges facing Ethereum’s public-goods ecosystem.