Ethereum Foundation laid off 54 employees, cutting about 20% of its workforce as part of restructuring

The Ethereum Foundation announced on June 22, 2026, that it has parted ways with 54 employees, representing roughly 20% of its total staff. The organization described the move as the final phase of a restructuring initiative that began in June 2025, aimed at streamlining operations and adapting to evolving funding realities.

Foundation restructures into five main pillars

As one of the main institutions supporting the growth of the Ethereum network, the Ethereum Foundation has reorganized its operations into five principal areas: protocol, access, user, community, and enterprise layers. Separate teams will now oversee management and general operations to ensure clearer distinction and focus across these domains.

According to the Foundation, the protocol layer will prioritize enhancing the Ethereum network’s resistance to censorship and external manipulation. This team is also charged with safely implementing network upgrades and advancing long-term research fields such as post-quantum security and Layer 1 privacy.

Mini glossary: Post-quantum security refers to protection methods developed to counteract the risk that future quantum computers could undermine current encryption techniques. Layer 1 privacy means integrating privacy features at the core blockchain level, rather than through additional application layers.

The access layer aims to make it easier for users to read blockchain data and submit transactions without needing intermediaries. Meanwhile, the enterprise layer will help corporations, government institutions, and nonprofits adopt Ethereum’s cryptographic tools more easily in their operations.

Senior departures draw attention

The reorganization closely followed a series of high-profile resignations within the Foundation. Most recently, co-executive director Hsiao Wei Wang, who had served on the research team for eight years, stepped down on June 22. Prior to Wang’s departure, fellow co-director Tomasz Stanczak also left his role in February. As a result, board member Bastian Aue now solely manages day-to-day operations.

Other researchers and engineers who have left since January include Josh Stark, Trent Van Epps, Tim Beiko, Barnabe Monnot, Carl Beek, and Julian Ma. Former researcher Dankrad Feist argued these exits were due to management challenges rather than strategic disagreements. Coinbase engineering manager Yuga Cohler characterized the situation as dysfunction within the organization.

Funding pressures come to the forefront

The staff cuts coincide with mounting concerns about funding for core Ethereum development. Trent Van Epps, who coordinated core development until April 2024, warned that developer financing could hit a critical point within the next three to nine months. Van Epps estimates that it costs about $30 million annually to sustain Ethereum’s more than ten client teams.

The Foundation’s four-year Client Incentives Program, which supported core software development, concluded in April 2026. The organization has previously stated its intention to scale back annual spending from around 15% of treasury assets to a 5% baseline by 2030.

Protocol Guild, an independent funding collective, has distributed nearly $38 million to Ethereum contributors since 2022. However, as it relies on voluntary donations rather than a fixed budget, the organization has acknowledged that its funding flow remains unpredictable.

Role of independent organizations grows

Just a day before the Foundation’s announcement of job cuts, five former researchers unveiled Ethlabs—a new independent, not-for-profit research lab. The initiative is supported by Ethereum co-founder Joe Lubin, Bitmine Immersion Technologies, SharpLink, Anchorage, and more than fifty community partners.

Vitalik Buterin has also promoted the CROPS framework, emphasizing the importance of censorship resistance, security against takeovers, transparency, privacy, and safety as the network evolves. Buterin views the growth of community-funded independent organizations as essential to keeping Ethereum’s core development both robust and decentralized as the Foundation reduces its spending. According to CoinMarketCap data, ETH is trading at $1,662—a sharp drop from its $4,950 peak in August 2025.

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