The Ethereum Foundation is undergoing one of the biggest organisational changes in its history, introducing a new operating structure while reducing its workforce by roughly 20%.
In a blog post published, the Foundation said it had completed a months-long reorganisation tied to the implementation of its updated mandate and treasury management strategy. The process resulted in the departure of 54 employees, leaving the organisation with a leaner structure focused on what it describes as Ethereum’s most critical long-term priorities.
Rather than operating through its previous setup, the Foundation has reorganised its work around five core areas: the protocol layer, access layer, user layer, community layer, and institutional layer. Additional teams will focus on operations and management support.
The Foundation said the new structure is designed to improve execution and ensure resources are directed toward work that only the organisation can carry out. While the workforce reduction has attracted attention, the announcement framed the layoffs as part of a broader effort to reshape how the Foundation supports Ethereum’s development over the coming years.
At the centre of the overhaul is a renewed emphasis on Ethereum’s core mission of supporting self-sovereign digital infrastructure.
The protocol layer will focus on advancing the Ethereum blockchain itself, including network upgrades, privacy improvements, security research, post-quantum readiness, zkEVM development, and efforts to reduce risks associated with maximal extractable value (MEV). According to the Foundation, the goal is to strengthen Ethereum’s resistance to censorship, capture, and excessive reliance on intermediaries.
The access layer will concentrate on how users and AI agents interact with the blockchain, with a focus on privacy, censorship resistance, data access, and user control. The user layer will conduct research into how individuals and organisations use Ethereum, helping guide future development priorities.
Meanwhile, the community and institutional layers will focus on ecosystem growth, public engagement, standards development, and relationships with enterprises, governments, universities, and nonprofit organisations. The Foundation said these efforts are intended to encourage broader adoption of Ethereum while preserving its core principles.
The Foundation acknowledged that the workforce reduction was difficult but said the changes were necessary to align spending and resources with long-term objectives. Employees leaving the organisation will receive severance packages, transition support, and assistance finding new opportunities within the Ethereum ecosystem.
The announcement comes at a time when Ethereum faces increasing competition from newer blockchain networks while also navigating growing institutional interest in tokenisation, stablecoins, and decentralised finance. As adoption expands, the Foundation appears to be positioning itself less as a broad ecosystem supporter and more as a focused steward of Ethereum’s technical and strategic direction.
The Foundation said additional details about the responsibilities of each cluster will be released in the coming weeks. For now, the message is that Ethereum’s most influential organisation is reshaping itself for a different stage of the network’s evolution.
This angle is stronger because it answers why the layoffs happened instead of treating the job cuts as the entire story. The Foundation itself spent most of the announcement explaining the new structure, not the layoffs.
What do you think about this? Share your thoughts below
Read also: Nigeria’s crypto industry launches into a new era as regulation catches up