The Ethereum Foundation announced today a reorganization that reduces its workforce by 54 colleagues, approximately 20% of total staff.

The changes conclude a months-long internal process designed to align operations with the organization’s previously stated strategic documents. Ethereum (ETH) price fall almost 7% on the news.

Scale of Cuts

EF Management confirmed the reduction in an official blog post published today. The departures represent approximately one-fifth of the organization, leaving a more focused team aligned with long-term priorities.

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Driven by Mandate and Treasury Policy

The changes implement the EF Mandate released March 13, 2026, and the Treasury Management Policy from June 4, 2025.

That policy targets annual operating expenses at 15% of treasury holdings now, declining toward a 5% long-term baseline.

“We come out of this process with the structure, activities, and people necessary for execution on the critical tasks ahead,” the foundation stated.

The EF adopted a seven-cluster structure with clearer accountability across core domains, sharpening focus on protocol security, censorship resistance, and user self-sovereignty.

Affected staff receive severance of one month’s pay per year of service (or local minimum, whichever is higher), plus transition assistance and ecosystem placement support.

With a smaller core foundation, independent teams and corporate participants are expected to take on larger roles. Investors should watch upcoming treasury reports and protocol milestones for continued execution under the refined mandate.

Recent Leadership Exits and Ecosystem Shifts

This move comes as the Ethereum Foundation faces intensifying leadership turnover and ecosystem shifts.

Over the past 10 days, BeInCrypto reported Hsiao-Wei Wang’s resignation as co-executive director and board member on June 19, the second co-ED exit in 2026 after Tomasz Stańczak’s departure in February.

At least eight senior figures have left since January, raising questions about governance and direction amid the foundation’s broader reorganization.

There have also been growing debate around core development funding. On June 20, Tom Lee pushed back against warnings of a potential “slow-burning crisis,” calling concerns overblown as the EF trims spending.

Just two days later on June 22, five former senior EF researchers launched Ethlabs, a new independent nonprofit backed by Lee, Joe Lubin, and others to accelerate institutional adoption.

These developments present as signs of talent and initiative flowing from the shrinking Foundation into a more decentralized ecosystem.

Source: BeInCrypto