--- title: "Ethereum Foundation Slashes 20% of Staff in Major Overhaul" date: 2026-06-23 author: "Kathleen Kinder" featured_image: "https://coinlaw.io/wp-content/uploads/2026/06/ethereum-foundation-lays-off-20-of-staff.jpg" categories: - name: "Cryptocurrency" url: "/crypto.md" tags: - name: "News" url: "/tag/news.md" --- # Ethereum Foundation Slashes 20% of Staff in Major Overhaul The Ethereum Foundation has reduced its workforce by 20% as part of a broad organizational overhaul aimed at improving execution and aligning resources with its long term strategic goals. ## Key Takeaways - Ethereum Foundation cut 54 employees, representing about 20% of its workforce. - The restructuring follows implementation of the EF Mandate and Treasury Management Policy. - The foundation introduced a new structure built around five core divisions supported by operational and management teams. - The move comes amid a period of leadership departures and ecosystem changes across Ethereum. ## What Happened? The Ethereum Foundation announced that it has completed a months long restructuring process that resulted in the departure of **54 employees**, roughly one fifth of its staff. The organization said the changes are designed to better align its operations with strategic priorities outlined in recent governance and treasury management documents. According to the foundation, the reorganization provides a more focused structure aimed at supporting Ethereum’s long term mission while improving accountability and execution across key areas of development and ecosystem growth. > Today, the EF is changing shape, concluding a months-long process of reorganization as part of the implementation of the Mandate and the Treasury Management Policy. > > We come out of this process with the structure, activities, and people necessary for execution on the critical… > > — Ethereum Foundation (@ethereumfndn) [June 23, 2026](https://x.com/ethereumfndn/status/2069408300148388113?ref_src=twsrc%5Etfw) ## Ethereum Foundation Reshapes Its Organization In an official blog post, the Ethereum Foundation said the overhaul concludes a lengthy internal review process tied to the implementation of its **EF Mandate**, released on March 13, 2026, and its **Treasury Management Policy**, introduced on June 4, 2025. The treasury policy seeks to reduce spending over time by targeting annual operating expenses at **15% of treasury holdings**, with a long term goal of reaching a **5% baseline**. The foundation stated: “ We come out of this process with the structure, activities, and people necessary for execution on the critical tasks ahead. Ethereum Foundation As part of the revamp, Ethereum has adopted a new operating model centered on specialized divisions and support teams designed to improve coordination and accountability. ## New Structure Focuses on Core Ethereum Priorities The new framework is organized around **five core domains**: - **Protocol development** - **Access infrastructure** - **User focused research** - **Community engagement** - **Institutional adoption** Each division is responsible for a specific area of Ethereum’s growth and development while collectively supporting the network’s commitment to **decentralization, privacy, security, censorship resistance, and self sovereign participation**. In addition to these five domains, the foundation established an **operations focused cluster** and a separate **management support cluster** that assists leadership and execution efforts across the organization. The Ethereum Foundation said the new structure is intended to create clearer lines of responsibility while helping teams focus on critical objectives. ## Support for Departing Employees The organization said employees affected by the workforce reduction will receive support packages designed to ease the transition. Departing staff members will receive **one month of severance pay for every year of service**, or the local minimum requirement where that amount is higher. The foundation also plans to provide transition assistance and support for finding opportunities within the broader [Ethereum ecosystem](https://coinlaw.io/ethereum-statistics/). ## Leadership Changes and Ecosystem Evolution The restructuring arrives during a period of significant leadership turnover within the Ethereum Foundation. Recent reports highlighted the resignation of **Hsiao Wei Wang** as co-executive director and board member on June 19. Her departure followed the exit of **Tomasz Stańczak**, who stepped down from his co-executive director role earlier this year. Reports indicate that at least **eight senior figures** have left the organization since January, prompting discussions about governance, leadership direction, and the future role of the foundation within the Ethereum ecosystem. At the same time, new initiatives are emerging outside the foundation. On June 22, five former senior Ethereum Foundation researchers launched **Ethlabs**, an independent nonprofit organization backed by **Tom Lee**, **Joe Lubin**, and other industry figures. The initiative aims to accelerate institutional adoption of Ethereum technologies. These developments suggest that while the [foundation itself is becoming leaner](https://coinlaw.io/vitalik-buterin-leaner-ethereum-foundation-strategy/), talent and innovation may increasingly spread across a wider network of independent organizations supporting Ethereum’s growth. ## CoinLaw’s Takeaway In my experience, major workforce reductions often raise concerns in the short term, but this move appears to be more about **strategic focus than financial distress**. I found the most important part of this announcement to be the Ethereum Foundation’s effort to redefine its role within a maturing ecosystem. As Ethereum continues to expand, the foundation seems to be encouraging a model where more responsibility is distributed across independent teams rather than concentrated within a single organization. Whether this approach succeeds will likely depend on how effectively these newly structured groups execute on Ethereum’s long term roadmap.