Ethereum Foundation Cuts Staff

The Ethereum Foundation has cut its staff by 20%, reducing its headcount by 54 people, and reorganized its remaining staff into five domain clusters focused on protocol, access, user, community, and institutional work [1]. This move is part of the foundation's effort to become "leaner and more focused" and better positioned to concentrate on work "that only EF can, and therefore must, do."

What drove the move

The restructure was framed by the foundation as the conclusion of a process begun under its Mandate and Treasury Management Policy, both introduced in 2025 [1]. The goal is an organisation "leaner and more focused" and better positioned to concentrate on work "that only EF can, and therefore must, do." Ethereum co-founder Joe Lubin rejected criticism of the blockchain foundation's recent budget cuts, staff departures, and restructuring, arguing the changes are meant to keep the foundation focused on Ethereum's core technology and neutrality rather than commercialization [2].

The five operational clusters each carry a distinct remit, with the Protocol Layer cluster tasked with shipping forks, defending the transaction pipeline against MEV, and advancing long-horizon research including post-quantum security, zkEVM, and L1 privacy [1]. The Access Layer cluster is focused on ensuring a credible, intermediary-free path exists for every action a user or agent might take on-chain — reading state, transacting, proving, and exiting. The restructure lands in a difficult period for the foundation, with at least eight senior figures having left the organisation over the past five months, including both co-executive directors [1].

The competitive picture

Ethereum's future will be driven by a broader ecosystem of organizations handling adoption and institutional engagement, while emerging trends like AI-powered "agentic commerce" could drive the network's next wave of growth [2]. Lubin said many concerns stem from a misunderstanding of what the foundation is supposed to do for the blockchain, which handles about 2 million transactions a day, according to Etherscan data [2]. The foundation's role should be narrower, more focused on stewarding the network's core technology and values, while other organizations take responsibility for adoption, institutional engagement, and ecosystem growth.

What to watch

• The foundation's new structure and how it will operate, with more detail expected in the coming weeks and months [1]
• The impact of the Glamsterdam upgrade, which has been pushed to Q3 2026, on the network's performance and adoption [1]
• The response of the Ethereum community and other stakeholders to the foundation's reorganization and the network's future direction

The Ethereum Foundation's reorganization and staff cuts have sparked debate on the foundation's role and the network's future, with the foundation's ability to execute on its new strategy and the network's ability to compete with other blockchains and emerging technologies hanging in the balance. As the foundation navigates this challenging period, its ability to maintain its focus on Ethereum's core technology and values will be crucial to the network's long-term success.