Ethereum Foundation Slashes 20% Workforce Amid ETH Price Crash

The Ethereum Foundation (EF) has announced a 20% reduction in its workforce, citing a major restructuring initiative aimed at streamlining operations and reallocating resources toward long-term development targets. The decision comes amid a steep drop in Ethereum’s price to around $1,650, following broader market sell-offs and heavy liquidations across digital assets.

In a statement on X, the EF explained, ‘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.’ The foundation acknowledged the scale of the cuts, noting, ‘We come out of this process with the structure, activities, and people necessary for execution on the critical tasks ahead of us, but also with 54 fewer colleagues, roughly 20% of the EF.’

The restructuring will organize the foundation into five core layers: protocol, access, user, community, and institutional, alongside separate groups for operations and management. The protocol layer will focus on developing Ethereum’s core technology, ensuring values like censorship resistance, privacy, security, and decentralization. Other divisions will address user experience, ecosystem involvement, outreach, and institutional adoption.

Regarding affected employees, the EF stated, ‘These decisions were hard, but they are necessary. We must be resourced and organized in a way that allows us to focus on the critical work that only EF can, and therefore must, do in the coming years, without excessive disruption from short-term market movements.’ Severance and career transition support, including grants and opportunities within the Ethereum ecosystem, will be provided to departing staff.

The EF plans to release more details about its new organizational structure and future plans in the coming weeks and months. This move mirrors recent layoffs at Coinbase, which cut 14% of its workforce.

Source: https://coingape.com/ethereum-foundation-slashes-20-workforce-amid-eth-price-crash/