The Ethereum Foundation is laying off 54 employees, slashing roughly 20% of its workforce, the nonprofit confirmed Tuesday. The cuts come as part of a broader restructuring that will consolidate the organization into specialized “clusters” designed to operate more nimbly. The move follows a string of high-level leadership exits that have left the foundation’s direction under scrutiny.
Inside the job cuts
The 54 positions eliminated span multiple departments, though the foundation did not break down which teams were hit hardest. Affected staff were notified this week, and severance packages have been offered. The foundation described the reduction as a “leaner” approach, aiming to streamline decision-making and reduce overhead.
The new cluster model
Instead of the traditional hierarchical structure, the Ethereum Foundation will reorganize into a series of focused “clusters” — teams dedicated to specific projects or functions like protocol development, research, and ecosystem support. The foundation says this will allow faster execution and clearer accountability. The exact number of clusters and their leaders have not been announced yet.
Leadership departures pile up
The restructuring follows a succession of departures from the foundation’s top ranks. Several key figures have left over the past six months, though the foundation has not publicly detailed the reasons. The timing of the layoffs — coming on the heels of those exits — suggests a deliberate effort to reset the organization’s culture and priorities.
What comes next
The foundation says it will finalize the cluster assignments by the end of July. Remaining staff will be reassigned to new teams in the coming weeks. For a nonprofit that has long operated with a relatively flat structure, this shift marks a significant change in how Ethereum’s core development work is managed. Whether the cuts slow down protocol upgrades or make the foundation more responsive is the open question.
