The Ethereum Foundation (EF) announced a major reorganization, reducing its workforce by 20% as it implements its new Mandate and Treasury Management Policy, according to the Ethereum Foundation Blog. The changes took effect on October 2, 2023, impacting 54 employees as part of a strategic restructuring.[2]
What happened
The Ethereum Foundation has restructured into five clusters focused on distinct domains of work: protocol, access, user, community, and institutional layers, alongside operations and management teams. This restructuring aims to enhance execution on critical tasks affecting Ethereum’s future. The EF expressed the need for a leaner organization to better address immediate challenges.[1]
In a statement, the EF acknowledged the difficult decision to part ways with 54 colleagues, emphasizing the necessity of refining its focus. The foundation stated, “These decisions were hard, but they are necessary.” The goal is to concentrate resources on essential tasks vital to Ethereum’s mission without succumbing to short-term market fluctuations.
Why it matters
The EF’s restructuring will allow it to concentrate on core areas vital for the growth and sustainability of the Ethereum ecosystem. By redefining its operational focus, the foundation aims to ensure a strengthened commitment to self-sovereignty and decentralized principles amidst evolving market dynamics.[3]
Background
On May 20, 2026, the Ethereum Foundation initiated discussions on revising its operational structure, influenced by the need to adapt to evolving market conditions and user needs. This reorganization was part of a broader strategy to implement the EF’s newly established Mandate and Treasury Management Policy.
What’s next
The Ethereum Foundation plans to provide further details on its new structure and operations in the coming weeks. Stakeholders can expect announcements on how the EF will engage with its community and improve its service delivery under the new framework.
