Ethereum Foundation Cuts 54 Jobs, Reshapes Operations Into 5 Core Units for Growth

Key Takeaways:

• The Ethereum Foundation (EF) has announced that it has fired 54, or about 20%, of employees following a weeks-long restructuring.
• EF has restructured into five clusters of core functional responsibilities: protocol, access, user, community and institutional development.
• The changes are meant to better execute, rationalize expenditure, and emphasize Ethereum’s long-term scale, the foundation says.

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    Follow us on Google NewsThe change marks one of the most significant organizational restructuring ever announced by The Ethereum Foundation, which has decided to trim the company by around 20% and adopt a new structure to better empower the future development of Ethereum.

The move impacts 54 staff members, and comes after months of planning in anticipation of the foundation’s new mandate and treasury management plan.

Read More: Ethereum Foundation Overhauls Leadership Amid Community Scrutiny: A Deeper Look

Table of Contents

• Ethereum Foundation Eliminates 54 Positions
• New Structure Built Around Five Core Clusters
  • Protocol Layer Becomes the Foundation’s Technical Focus
  • Expanding Beyond Core Development

Ethereum Foundation Eliminates 54 Positions

Ethereum Foundation has recently announced in a statement that its workforce would be shrinking by 54 members as part of a restructuring initiative.

The foundation said the decision was tough because it had to prioritize its resources to maximize EF’s impact. The organization is committed to long-term execution and not short-term market conditions.

Severance packages and transition assistance shall be given to employees affected by the layoffs. Support services cover career advice, placement assistance within the ecosystem and financial grants to help with transition. The foundation said that there are many transactional members set to stay in the ecosystem as part of other projects and organizations.

Read More: Vitalik Reveals Ethereum Foundation Overhaul as ETH Secures $250B and Cuts Influence

## New Structure Built Around Five Core Clusters

The reorganization introduces a new framework that divides Ethereum Foundation activities into five primary domains.

Under the new structure, the Ethereum Foundation will operate through five dedicated clusters covering protocol development, user access, ecosystem research, community engagement, and institutional adoption, creating a more specialized framework for executing Ethereum’s long-term objectives.

Additional teams will oversee operations and management functions. The restructuring reflects a more specialized approach to Ethereum’s development. Each cluster is responsible for the specific responsibilities, accountability and goals to support the specific aspects of the network’s development.

Protocol Layer Becomes the Foundation’s Technical Focus

Of the units that have been established, Protocol Layer (PL) is vital to Ethereum’s mission for the long term.

It’s charged with scalability, security, streamlining unneeded complexity and pushing forward some of the biggest innovations on Ethereum like zero-knowledge, Layer 1 improvements and post-quantum security research.

The foundation also shared their work to enhance censorship resistance, user sovereignty and minimize potential risks from toxic MEV and privileged transaction ordering.

Expanding Beyond Core Development

The new Access Layer will be dedicated to making Ethereum more accessible to users and autonomous agents. This includes transaction execution, data access, delegation tools, privacy protections, and reducing dependence on centralized intermediaries.

Meanwhile, the User Layer will provide user feedback, input, and research to further ensure that protocol decisions align with the needs of users. The Community Layer will lead efforts to make Ethereum’s presence public, education and outreach efforts, and co-operations with privacy groups, open-source communities and decentralized technology groups.