Ethereum Foundation cut workforce by 20% as part of new five-layer restructuring

The Ethereum Foundation has announced the completion of a comprehensive restructuring process, resulting in the departure of 54 employees. According to the foundation’s statement, this number corresponds to roughly 20% of its total workforce. The move comes as part of a broader reorganization of the foundation’s operational and organizational structure.Five-layered structure introduced20% workforce reductionMarket pressure persists as ecosystem shifts Five-layered structure introducedIn a blog post dated June 23, 2026, the Ethereum Foundation revealed that its new organizational model is built around five core focus areas: protocol layer, access layer, user layer, community layer, and enterprise layer. The foundation stated that this framework was designed to sharpen the focus on Ethereum’s long-term objectives and to ensure resources are directed more efficiently towards priority areas.Widely recognized as a central pillar supporting the growth of the Ethereum ecosystem, the foundation plays a crucial role in the blockchain industry. Ethereum, the world’s second-largest cryptocurrency by market capitalization behind Bitcoin, remains the leading platform for decentralized application (dApp) development globally.The foundation emphasized that after the restructuring, it now possesses the necessary capacity, operational capabilities, and human resources to fulfill its critical roles.One notable aspect of the new model is the emphasis on the enterprise layer. This division aims to strengthen relationships with companies, financial institutions, government agencies, universities, and non-profit organizations, reflecting a broader strategy to engage with a diverse set of stakeholders. 20% workforce reductionAs part of the restructuring, the foundation confirmed that 54 employees will leave the organization. The foundation acknowledged the difficulty of this decision but noted it was necessary to allow a greater focus on core responsibilities and to ensure long-term sustainability.Departing staff members will receive severance packages and transition support, the foundation added. Additionally, those affected will be assisted in finding new opportunities within the broader Ethereum ecosystem.Announcing the organizational changes on X, the Ethereum Foundation said that 54 colleagues—about 20% of the organization—will depart from the team.Market pressure persists as ecosystem shiftsThe restructuring announcement coincided with continued pressure on the price of Ethereum. According to TradingView data, ETH was trading at $1,661.83 at the time of the news, marking a 5.22% decline over the previous 24 hours.Messages from the foundation suggested an emphasis on long-term development and growth, rather than short-term price fluctuations, signaling a commitment to creating a leaner and more focused organization as a result of the changes. The Ethereum Foundation also indicated that more detailed information about the new organizational model and future plans will be shared in the coming weeks.Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.