Ethereum Foundation Cuts 20% of Workforce in Major Organizational Restructuring

The Ethereum Foundation (EF) has announced a significant workforce reduction, cutting approximately 20% of its staff as part of a broad organizational restructuring aimed at improving efficiency and supporting its long-term development goals.

The announcement comes during a challenging period for the cryptocurrency market, with Ethereum’s price recently falling to around $1,650 amid widespread market volatility and heavy liquidations across digital assets.

In a statement shared on X, the Ethereum Foundation said the changes are the result of a months-long reorganization process tied to the implementation of its updated mandate and treasury management strategy. According to the organization, the restructuring is designed to streamline operations, strengthen execution capabilities, and better align resources with key priorities for the future.

As part of the overhaul, the Ethereum Foundation confirmed that 54 employees will leave the organization, representing roughly one-fifth of its workforce. While acknowledging the impact of the layoffs, EF stated that the new structure will allow the organization to focus more effectively on critical initiatives that support Ethereum’s long-term growth and development.

Under the revised framework, the Ethereum Foundation will operate across five primary areas: protocol, access, user, community, and institutional. Separate teams will continue to handle management and operational responsibilities.

The protocol division will remain responsible for advancing Ethereum’s core technology while maintaining key principles such as decentralization, privacy, security, and censorship resistance. Other divisions will focus on improving user experience, expanding ecosystem participation, strengthening community engagement, and driving institutional adoption of Ethereum.

The foundation emphasized that the workforce reduction was a strategic decision intended to ensure resources are allocated to the areas where EF can have the greatest impact. It also noted that the restructuring is designed to minimize disruptions caused by short-term market fluctuations.

To support affected employees, the Ethereum Foundation will provide severance packages, career transition assistance, and grants to help former staff explore new opportunities within the broader Ethereum ecosystem.

The organization added that further details regarding its updated structure, operational plans, and future initiatives will be released in the coming weeks and months.