Ethereum Foundation Lays Off 54 Employees (20%) in Restructuring, Prioritizes Long-Term Development

The Ethereum Foundation has reduced its workforce by about 20%, cutting 54 roles after a reorganization that has been underway for months to sharpen focus on long-term development priorities. In a June 23 post on X, the Foundation said the reductions conclude a restructuring conducted under its Mandate and Treasury Management Policy. It said it will operate with a smaller team "focused on the most important responsibilities" that only the Foundation can carry out, aligning personnel, resources, and operations with that mission. Under the new structure, the Foundation has been organized into five core areas: protocol, access, user, community, and institutional, with separate teams continuing to manage day-to-day management and operations. The protocol group will remain responsible for Ethereum's core technology, including decentralization, privacy, security, and censorship resistance. Other groups will focus on user experience, ecosystem participation, community engagement, and institutional adoption. The announcement comes amid leadership changes and shifting market conditions. Last week, Hsiao‑Wei Wang stepped down as co-executive director and a board member. The layoffs were disclosed during a broader downturn in crypto markets, with ETH trading near $1,650 after a selloff that triggered liquidations across digital assets. The Foundation said development work will continue, pointing to major upgrades in progress. These include the Glamsterdam upgrade, expected to introduce changes such as Enshrined Proposer‑Builder Separation and Block‑Level Access Lists to increase transparency in block production and improve client data handling. It also highlighted work on gas repricing, Layer‑1 scaling, privacy improvements, and security enhancements. Affected employees will receive severance, transition assistance, and career support, with additional grants available to help cover career-transition expenses. The Foundation said the decision reflects long-term resource allocation rather than short-term market movements, stating it needs to be "resourced and organized" to focus on critical work that only EF can do in the coming years. The staff cuts mirror a broader downsizing trend across crypto organizations. Earlier this month, media outlet Bankless drew backlash after large, undisclosed layoffs. The Ethereum Foundation said it plans to release more details on its new structure and plans in the weeks and months ahead.