Ethereum Foundation Cuts Staff, Refocuses Core Development

• Ethereum Foundation is reducing headcount by roughly 20%.
• The R&D division will operate under a new “Protocol” structure.
• Leadership is prioritizing Layer-1 scaling, blob capacity and user experience.

The overhaul, announced in a blog post, reduces headcount from more than 110 employees to fewer than 100 and rebrands the Foundation’s research and development division as “Protocol.” The move marks one of the most significant organizational changes in Ethereum’s history and reflects a broader effort to decentralize development responsibilities across the ecosystem. Ethereum Foundation Narrows Its Focus The restructuring signals a shift in how the Ethereum Foundation views its role within the network.
For much of Ethereum’s history, the Foundation acted as both a coordinator and a major source of technical development. Under the new model, leadership intends to focus more narrowly on core protocol infrastructure while encouraging external organizations to take a larger role in research, product development and ecosystem funding. The newly branded Protocol division will concentrate on Layer-1 scaling, blob expansion, protocol architecture and user experience improvements. These areas have become increasingly important as Ethereum seeks to lower transaction costs, improve network efficiency and support growing institutional adoption. Foundation leaders described the changes as an effort to streamline operations and improve execution around Ethereum’s most critical technical priorities. Glamsterdam Upgrade Becomes Central Priority The restructuring comes as Ethereum prepares for its next major protocol upgrade. The upcoming Glamsterdam release, expected to enter testing later this year, has emerged as a key focus for the Foundation’s technical roadmap. Developers are working on features including enshrined Proposer-Builder Separation (ePBS) and Block-level Access Lists (BALs), both of which aim to improve network throughput and transaction processing efficiency. The upgrade also aligns with the Foundation’s broader objective of increasing Layer-1 capacity while preserving decentralization and security. As Ethereum faces growing competition from alternative smart-contract networks, improving base-layer performance has become a strategic priority for both developers and institutional participants. Independent Research Groups Gain Influence The Foundation’s restructuring coincides with the launch of Ethlabs, a new independent nonprofit research organization founded by several former Ethereum Foundation researchers. The group includes prominent Ethereum contributors such as Ansgar Dietrichs and Barnabé Monnot and plans to focus on institutional-grade scaling solutions and network readiness initiatives. The emergence of independent organizations reflects a broader trend across the Ethereum ecosystem. Rather than relying on a single central entity, research and development efforts are increasingly distributed among specialized nonprofits, commercial firms and open-source contributors. Supporters argue that this model strengthens decentralization while reducing dependence on Foundation funding and coordination. New Mandate Targets MEV and Privacy Beyond scalability, the Ethereum Foundation is sharpening its focus on two long-term challenges: maximal extractable value (MEV) and privacy. MEV has become one of the network’s most debated structural issues because it can influence transaction ordering and create incentives that conflict with user interests. Foundation researchers have identified mitigation efforts as a key area of future development. Privacy has also moved higher on the organization’s agenda. Recent discussions within the Foundation have emphasized making privacy-preserving tools a more integrated component of Ethereum’s infrastructure rather than treating them as optional applications built on top of the network. The Foundation is also aligning its internal financial operations more closely with the ecosystem by expanding the use of ETH and Ethereum-native stablecoins for compensation and treasury management. Market Views Restructuring as a Sign of Maturity Industry analysts have largely interpreted the changes as evidence of Ethereum’s growing maturity. Rather than signaling retrenchment, supporters argue the restructuring reflects the evolution of a network that no longer depends on a single organization to drive innovation. Research, infrastructure development and funding are increasingly spread across a diverse set of contributors. That transition may ultimately strengthen Ethereum’s decentralization while allowing the Foundation to focus on its role as a steward of the protocol rather than its primary builder. As Ethereum enters its second decade, the Foundation’s latest overhaul suggests leadership believes the network’s future will depend less on centralized coordination and more on a broader ecosystem of independent developers, researchers and institutions working toward shared technical goals.