Ethereum Foundation Announces Major Shake-Up and Budget Cuts

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The Ethereum Foundation (EF) has completed a months-long organizational overhaul that includes cutting about one-fifth of its workforce and reorganizing around new strategic priorities. At the same time, the restructuring comes as the EF reduces its annual budget by about 40% and shifts toward a long-term endowment-based funding model. Ethereum (ETH) co-founder Vitalik Buterin said the changes are intended to better position the organization for Ethereum’s next phase of development.

Ethereum Foundation Adopts New Structure

Specifically, the Ethereum Foundation announced on June 23 that it has reduced its workforce by 54 employees, or around 20% of the organization, as part of a more extensive restructuring tied to its Mandate and Treasury Management Policy.

According to the Foundation, the reorganization aims to focus resources on work that only the EF can perform, reduce spending, and limit exposure to short-term market cycles.

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Indeed, the Foundation now operates through five primary mission-focused clusters, which include Protocol, Access, User, Community, and Institutional, and are supported by separate Operations and Management groups.

The Protocol cluster will continue leading core Ethereum development, including work on protocol upgrades, security, zkEVM research, Layer 1 privacy, and post-quantum cryptography (PQC). Meanwhile, the Access and User clusters will focus on improving self-custody, user experience, delegated authority, wallet infrastructure, and application accessibility.

The Institutional cluster will expand engagement with enterprises, financial institutions, governments, universities, and standards organizations to encourage Ethereum adoption and preserve the network’s principles of censorship resistance, privacy, open source development, and security.

At press time on June 24, Ethereum’s native token, ETH, was changing hands at the price of $1,665.63, up 1% in the last 24 hours, down 6.6% across the past seven days, and down 21.1% over the month, according to the most recent chart information.

Budget Cuts Accompany Long-Term Strategy

In a post on X, Ethereum co-founder Vitalik Buterin said the Foundation is reducing its budget by roughly 40% this year as it transitions toward becoming a long-term endowment-based organization.

The Foundation said employees leaving the organization will receive severance packages based on tenure or local legal requirements, whichever is greater, along with career transition support and grants to help them continue contributing to the Ethereum ecosystem.

The restructuring follows months of internal changes aimed at sharpening the Foundation’s focus on long-term protocol development and not short-term ecosystem priorities.

According to the Foundation, additional details about each organizational cluster and how developers, researchers, enterprises, and community members can engage with the new structure will come out over the coming weeks.