Ethereum Foundation has reduced its workforce by roughly one fifth, removing 54 roles as part of a reorganization tied to its mandate and treasury policy. The change follows months of internal review and arrives during a period of leadership turnover and increased pressure across the broader Ethereum ecosystem.
In a June 23 post, the foundation said the process leaves it with “the structure, activities, and people necessary for execution on the critical tasks ahead of us.” The same announcement confirmed that those departing will continue contributing to Ethereum from outside the organization in many cases.
The reduction comes after several high-level exits. Co-executive director Hsiao-Wei Wang stepped down earlier this month. Co-executive director Tomasz Stańczak had already left. Board member Bastian Aue assumed broader oversight during the transition. About nine senior figures who have moved on or shifted roles over the past six months.
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.
— Ethereum Foundation (@ethereumfndn) June 23, 2026
We come out of this process with the structure, activities, and people necessary for execution on the critical…
Internal reset focuses on core responsibilities
EF reorganized its work into distinct clusters that reflect its priorities. These include protocol, access, user, community, and institutional domains, along with operations and management support. Each cluster carries separate responsibilities tied to Ethereum’s long-term development.
The protocol group retains responsibility for core infrastructure. It focuses on censorship resistance, open-source guarantees, privacy, and security. The Ethereum Foundation described this work as protecting Ethereum from capture and maintaining reliability under stress scenarios that involve failing intermediaries or restrictive environments.
The access layer addresses how users interact with the network. The need for direct interaction without reliance on unverifiable intermediaries. The same section outlined expectations for private transactions and control over delegated actions.
The user and community layers aim to connect development decisions with real-world needs and maintain the foundation’s public position. The institutional group focuses on relationships with enterprises, governments, and other organizations that integrate Ethereum into financial or operational systems.
Firsthand strain on staff and operations
The restructuring required difficult decisions. The foundation wrote,
“These decisions were hard, but they are necessary.”
It linked the move to a need for focus on tasks that only the organization can perform.
The post described support for those leaving. Severance equals at least one month of pay per year worked or the amount required by local law, whichever is higher. Transition support includes help with job placement inside the ecosystem and a grant to cover costs such as career coaching.
The tone of the announcement shows internal strain during the process. The reduction followed months of uncertainty tied to budget priorities and operational scope. The foundation stated that it must avoid disruption from short-term market movements while maintaining long-horizon work.
Broader ecosystem activity continues outside the foundation
The restructuring coincides with new initiatives beyond the foundation itself. Joseph Lubin backed ETHLabs, a nonprofit research and development effort supported by companies such as BitMine Immersion Technologies and SharpLink Gaming. The initiative aims to advance Ethereum’s technical roadmap and expand institutional adoption.
Developers continue work on upgrades that affect scaling, privacy, and transaction processing. These changes aim to refine how data flows through the network and how blocks are produced.
Market conditions have added pressure. HodlFm data shows Ethereum’s native asset traded near $1,650 during a recent downturn that triggered liquidations across digital assets.
Governance and regulatory context adds pressure
The foundation faces questions about its governance model as leadership changes continue. The concentration of departures over a short period has drawn attention to how decisions are made and how resources are allocated across research and development priorities.
Regulatory developments in the United States shape the environment in which Ethereum operates. The Commodity Futures Trading Commission has expanded its role in overseeing crypto derivatives and prediction markets. Chair Michael S. Selig recently emphasized that innovation in digital markets does not always apply to traditional sectors such as agriculture, which reinforces a selective approach to new financial instruments.
The Ethereum Foundation stated that its institutional cluster will track policy developments and respond to regulatory changes that affect self sovereign use of the network. This includes engagement with academic groups and advocacy organizations.
Shift toward a leaner organization
The foundation described its new structure as more focused on execution. It emphasized alignment between resources and responsibilities that support Ethereum’s long-term goals. The organization plans to release further details about how the ecosystem can engage with the updated structure.
The statement also framed the change as part of a broader effort to maintain independence from external pressures, including financial incentives that conflict with its principles.
“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.”
Dayo Paul
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that, despite the nature of much of the material created and hosted on this website, HODL FM operates as a media and informational platform, not a provider of financial advisory services. The opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice, HODL FM strongly recommends contacting a qualified industry professional.
