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The Ethereum Foundation (EF) is undergoing a major restructuring as it moves toward a leaner and more sustainable operating model. On June 23, Ethereum co-founder Vitalik Buterin announced that the foundation will reduce its annual budget by approximately 40% and cut 54 jobs, representing around 20% of its workforce.
According to Buterin, the goal is to transform the Ethereum Foundation into an endowment-style organization, lowering annual spending from roughly 15% of its treasury to just 5% by 2030. The move is intended to ensure long-term financial sustainability while maintaining support for Ethereum’s development.
The restructuring comes amid a wave of leadership departures. Since the beginning of 2026, nine senior figures have left the foundation, including former Co-Executive Directors Hsiao-Wei Wang and Tomasz Stanczak. Buterin acknowledged the loss of experienced contributors, describing the layoffs as difficult but necessary decisions.
As part of the overhaul, the foundation will reorganize its work into several key clusters focused on protocol development, user access, community growth, institutional adoption, operations, and management. The protocol team will prioritize Ethereum network scaling and security, while institutional initiatives will focus on enterprise engagement and policy coordination.
Additional changes include the closure of the Privacy and Scaling Explorations unit, smaller Devcon events, and increased use of AI-assisted verification tools to support Ethereum client development.
Despite the downsizing, the broader Ethereum ecosystem continues to expand. A new nonprofit research organization, Ethlabs, backed by major Ethereum supporters and industry leaders, was recently launched to strengthen connections between institutions and the Ethereum network.
The restructuring signals a significant shift in Ethereum Foundation strategy, emphasizing efficiency, sustainability, and long-term ecosystem growth as Ethereum continues to evolve.
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