The Ethereum Foundation has reduced its workforce by about 20%, cutting 54 roles as part of a broader restructuring aimed at reshaping how the organization supports the network’s development. The move follows an 18-month internal transformation and aligns with updated operational and treasury policies.
Employees affected by the cuts will receive severance based on tenure or legal minimums, along with grant support and assistance finding new roles within the wider Ethereum ecosystem. The foundation said many of those leaving are expected to continue contributing independently.
New five-cluster structure introduced
The reorganization introduces a five-cluster framework covering protocol, access, user, community, and institutional layers, supported by operations and management teams. Each unit will operate with defined accountability and oversee specific development or outreach responsibilities tied to Ethereum’s roadmap.
The protocol cluster will concentrate on core infrastructure, including scaling efforts, post-quantum cryptography, zkEVM integration, and Layer 1 privacy. The access cluster will focus on enabling direct and decentralized interaction with the network to preserve user autonomy.
The user layer is designed to channel feedback from participants and partners into development priorities, while the community division will handle outreach and clarify the foundation’s role within the open-source ecosystem.
The institutional cluster will manage engagement with enterprises, governments, universities, and nonprofits working on Ethereum adoption and policy.
Leadership changes follow earlier departures
The restructuring builds on leadership changes that began in early 2025, when Vitalik Buterin initiated a strategic overhaul. This period saw the departure of former co-executive directors and several senior researchers and technical leaders.
Some former contributors have since launched Ethlabs, a nonprofit focused on Ethereum’s institutional expansion. The initiative reflects a broader shift toward decentralizing research and development across independent groups.
Market impact and outlook
The changes come as Ethereum faces weaker market momentum. The asset is trading near $1,647, below its 20-day moving average, with indicators pointing to a soft trend. U.S. spot Ethereum ETFs recorded net outflows of about $10 million in the latest weekly data.
Analysts say the restructuring could strengthen Ethereum’s decentralization over time by shifting more development activity to external teams. However, some warn of potential short-term disruption, including concerns about reduced funding for core development.
On-chain data shows mixed signals. Exchange outflows have slowed, while stablecoin activity remains strong, with roughly $156 billion in USD-pegged assets on the network, underscoring Ethereum’s role in digital finance.
Traders are watching the planned Glamsterdam upgrade, expected in the second half of 2026, as a key test of whether the ecosystem can maintain its development pace under the new structure.
To understand Ethereum’s evolving roadmap, explore our guide on Ethereum Pectra upgrade 2025 and its impact on future development.
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