The Ethereum Foundation is cutting its budget by 40% and reducing headcount by 20%, founder Vitalik Buterin announced today. The move — described internally as a major reset — comes as the foundation grapples with a sustained leadership exodus. Hours after the announcement, Co-Executive Director Hsiao-Wei Wang resigned, bringing the total number of senior figures to leave since January to nine.
A 40% budget reset
Buterin said the foundation would shrink spending sharply, calling it “a necessary reset” in a statement released Tuesday. The cut affects all departments, though the foundation hasn't detailed which programs or grants will be trimmed first. The 40% reduction is the largest single budget adjustment in the foundation's history. It’s a stark signal that the organization is moving to a leaner footing after years of steady spending on ecosystem grants, research, and events.
Headcount slashed by 20%
Alongside the budget cut, the foundation confirmed a 20% reduction in its workforce. The layoffs are already underway, according to people familiar with the matter. The foundation employed roughly 400 people before the cuts. The timing isn't great — the crypto market is still recovering from a drawn-out bear cycle, and Ethereum faces increasing competition from faster L1s. Buterin framed the cuts as a way to ensure the foundation's long-term sustainability.
Ninth senior exit this year
Wang’s resignation marks the ninth senior departure since January. She had served as Co-Executive Director for less than a year. The foundation has not named a replacement or said whether the co-executive structure will survive. The string of exits — which includes researchers, engineers, and operations leads — has raised questions about morale and strategic direction. Buterin didn't address the turnover directly, but the reset appears designed to centralize decision-making and trim overlapping roles.
The foundation now has to execute its reset with a significantly leaner team and a smaller budget — a test of its resilience.
