Ethereum Foundation Cuts 20% of Workforce During Major Internal Restructuring

The Ethereum Foundation has reduced its workforce by around 20%, cutting 54 positions as part of a larger restructuring plan aimed at reshaping the organization’s long-term strategy.

The layoffs were confirmed in a blog post released Tuesday, where the Foundation said the changes are connected to its updated mandate and treasury policy. According to the organization, the restructuring is designed to create a leaner and more focused structure centered on what it described as Ethereum’s most critical development priorities.

The decision comes during a period of major leadership changes and growing debate within the Ethereum community over governance, competition and the future direction of the blockchain network.

Leadership Departures Raise Questions About Governance

The restructuring follows several high-profile departures from the Ethereum Foundation over the past six months. Co-executive director Hsiao-Wei Wang recently stepped down after the earlier departure of fellow co-executive director Tomasz Stańczak.

Board member Bastian Aue has now taken on broader responsibilities overseeing operations and the transition period.

Reports indicate that nearly nine senior leaders have exited or shifted roles recently, leading to increased scrutiny of the Foundation’s leadership model as rival blockchain ecosystems continue expanding their market presence.

New Ethereum Ecosystem Initiatives Continue Expanding

Despite the internal downsizing, parts of the wider Ethereum ecosystem are still growing. Earlier this week, BitMine Immersion Technologies, SharpLink Gaming and Ethereum co-founder Joseph Lubin announced support for ETHLabs, a new nonprofit research and development initiative focused on Ethereum adoption and technical growth.

As part of the restructuring, the Ethereum Foundation said it will organize its operations into five main divisions, including a new institutional layer dedicated to enterprise partnerships, financial infrastructure and policy coordination.