Ethereum Foundation Cuts Budget, Lays Off Staff Amid Protocol Development Focus

The Ethereum Foundation has undergone significant restructuring in recent months, marking a new chapter for the project as it enters its second decade. The foundation has reduced its budget by approximately 40% and eliminated around 20% of its workforce, affecting about 54 staff positions.

This strategic pivot aims to focus on core protocol development, with other responsibilities being transferred to independent organizations. The leadership shakeup began in February when Co-executive Director Tomasz Stańczak stepped down. Hsiao-Wei Wang, part of the foundation's leadership team, departed in mid-June.

At least eight senior researchers have left the Ethereum Foundation this year, with five departing in May alone. This shift has raised concerns about the potential impact on the project's development and research quality.