The Ethereum Foundation has cut 54 staff members, equal to around 20% of its workforce, after completing a months-long reorganization process.
The foundation is now moving forward with a new five-cluster structure designed to support its Mandate and Treasury Management Policy. The changes mark one of the biggest internal shifts at the Ethereum Foundation in recent years and come as the organization sharpens its focus on Ethereum’s long-term development, security, privacy, scalability, and institutional adoption.
According to the Ethereum Foundation, the new structure gives the organization the people, activities, and framework needed to execute on the most important tasks ahead.
Ethereum Foundation Completes Major Restructuring
The Ethereum Foundation has formally concluded a major internal transformation that reshapes how the nonprofit will operate in the next phase of Ethereum’s growth.
As part of the reorganization, the foundation reduced its team by 54 people. This represents roughly one-fifth of its total workforce.
The restructuring follows several months of organizational changes and is connected to the foundation’s broader effort to align its operations with its Mandate and Treasury Management Policy.
The move suggests a more focused operating model for the Ethereum Foundation as the wider Ethereum ecosystem continues to expand across decentralized finance, blockchain infrastructure, privacy tools, enterprise adoption, and regulatory discussions.
Departing Staff Will Receive Severance and Transition Support
Employees leaving the Ethereum Foundation will receive a severance package based on the higher of two options: one month of pay for every year worked at the foundation or the legally required amount in their local jurisdiction.
This is the same package previously offered to other staff members who left during earlier stages of the reorganization.
The Ethereum Foundation will also provide transition support. This includes ecosystem placement assistance and small grants to help cover individual transition costs, such as career coaching.
The foundation said many departing team members are expected to continue contributing to the broader Ethereum ecosystem from outside the organization.
New Five-Cluster Structure Explained
The new Ethereum Foundation structure is built around five main domain-focused clusters: protocol layer, access layer, user layer, community layer, and institutional layer.
These teams will work alongside a dedicated operations cluster and a management cluster, which includes groups that directly support Ethereum Foundation leadership.
Each cluster has its own internal structure and accountability framework. This is designed to help teams focus on their specific responsibilities while staying aligned with the foundation’s wider mission.
Protocol Layer: Strengthening Ethereum’s Core
The protocol layer cluster sits at the center of the new Ethereum Foundation structure.
Its main role is to strengthen the Ethereum base protocol by improving security, resilience, and scalability. The cluster is also focused on protecting Ethereum from capture and censorship.
Its long-term work includes post-quantum security, zkEVM development, L1 privacy, and Ethereum protocol scaling.
This makes the protocol layer one of the most important parts of the new model, especially as Ethereum continues to support major activity across smart contracts, decentralized applications, stablecoins, and tokenized assets.
Access Layer: Keeping Ethereum Open and Verifiable
The access layer cluster is focused on making sure users can interact with Ethereum without depending on unverifiable third parties.
This includes the ability to read the chain, make transactions, prove activity, delegate, and exit without relying only on intermediaries.
The Ethereum Foundation described this approach as a “zero option” standard. This means that for every intermediated path, there should still be a credible option that does not require an intermediary.
The goal is to keep Ethereum open, censorship-resistant, and accessible to users who want direct interaction with the network.
User Layer: Bringing Real-World Feedback Into Ethereum Development
The user layer cluster is designed to keep Ethereum Foundation decisions grounded in the needs of real users, builders, and organizations.
Its role is to collect practical feedback from the market and bring that input into decisions made by the protocol and access layer teams.
This gives the foundation a clearer connection between technical development and real-world usage.
By adding a dedicated user layer, the Ethereum Foundation aims to make sure its work continues to support actual demand across the Ethereum network and the wider blockchain industry.
Community Layer: Shaping the Ethereum Foundation’s Voice
The community layer cluster will guide how the Ethereum Foundation presents itself inside and outside the Ethereum ecosystem.
This includes communication, public positioning, ecosystem relationships, and the way the foundation explains Ethereum’s values to the broader market.
In its blog post, the Ethereum Foundation said this cluster will help distinguish the organization from what it described as “zero-sum financial crypto” and “corpo-compromised crypto.”
The community layer is expected to play an important role in strengthening Ethereum’s identity as an open, decentralized, and public blockchain ecosystem.
Institutional Layer: Supporting Ethereum Adoption
The institutional layer cluster will manage the Ethereum Foundation’s work with financial institutions, enterprises, governments, universities, nonprofits, and other organizations integrating Ethereum.
This team will also work with academics and advocacy groups on policy and regulatory developments affecting Ethereum and the broader crypto industry.
The creation of this cluster comes as institutional interest in Ethereum continues to grow. Areas such as tokenization, stablecoins, decentralized finance, settlement infrastructure, and blockchain-based financial products are becoming increasingly important for the network’s long-term adoption.
Leadership Changes Follow 18-Month Transformation
The workforce cuts are part of a broader 18-month transformation that has reshaped the Ethereum Foundation’s leadership and team structure.
In January 2025, Ethereum co-founder Vitalik Buterin announced major leadership changes after public calls for a new direction at the foundation.
Later, Hsiao-Wei Wang and Tomasz Stanczak were appointed as co-executive directors. Both have since left their roles. Stanczak departed in February 2026, while Wang left earlier this month.
Several other senior figures have also exited the Ethereum Foundation, including Josh Stark, Protocol team leads Tim Beiko and Barnabe Monnot, and researchers Carl Beek and Julian Ma.
These departures show the scale of the internal reset taking place at one of the most influential organizations in the crypto industry.
Ethlabs Launches After Ethereum Foundation Departures
The restructuring comes shortly after the launch of Ethlabs, a new Ethereum research and development organization focused on institutional adoption.
Ethlabs launched just one day before the Ethereum Foundation announced its new structure. The nonprofit is backed by Joe Lubin, Bitmine, and SharpLink, and has ties to former Ethereum Foundation researchers.
The organization is expected to support Ethereum’s next growth phase as more institutions explore blockchain infrastructure and Ethereum-based applications.
Ethereum Foundation Focuses on CROPS Technologies
In previous updates, the Ethereum Foundation said it would focus more heavily on technologies described as censorship resistant, open source, private, and secure, also known as CROPS technologies.
This direction fits closely with the new five-cluster structure, especially the protocol and access layer clusters.
By prioritizing privacy, security, open-source infrastructure, and censorship resistance, the Ethereum Foundation is reinforcing the core values that have shaped Ethereum since its early days.
What Comes Next for the Ethereum Foundation?
The Ethereum Foundation said it will share more details in the coming weeks about how each cluster will operate and how the broader Ethereum ecosystem can engage with the new structure.
For now, the reorganization marks a major turning point for the foundation.
With a smaller team, a clearer operating model, and a stronger focus on Ethereum’s long-term mission, the Ethereum Foundation is entering a new phase of development.
The key question is whether this new structure will help the organization move faster, support builders more effectively, and strengthen Ethereum’s position as the leading smart contract blockchain.
