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Ethereum Foundation Restructures Development Team and Announces Staff Layoffs

Introduction

The Ethereum Foundation has undertaken a significant organizational restructuring, rebranding its core research and development team while implementing staff reductions. This strategic move aims to streamline operations and focus on critical blockchain advancement goals as Ethereum approaches potential mass adoption.

Major Organizational Changes at Ethereum Foundation

Protocol Team Rebrand and New Focus Areas

On June 2, 2025, the Ethereum Foundation announced the transformation of its former Protocol Research & Development (PR&D) team into a newly streamlined “Protocol” division. This restructured team will concentrate on three primary strategic objectives:

  • Scaling Ethereum’s Base Layer (L1): Enhancing the fundamental blockchain infrastructure to handle increased transaction volume
  • Expanding Blobspace for Rollups: Improving layer-2 scaling solutions through enhanced data availability
  • Improving User Experience (UX): Making Ethereum more accessible and user-friendly for mainstream adoption

Layer 2 Scaling Solutions
Layer 2 Rollups Infrastructure Source: Chainlink Blog

Staff Reductions and Team Optimization

As part of this organizational overhaul, the Ethereum Foundation confirmed that “some members” of the former PR&D team are departing the organization. While the Foundation has not disclosed specific numbers regarding the layoffs, the restructuring represents a move toward what they describe as “a more united and leaner organization with more focused teams.”

Key personnel assignments include longtime core developers Tim Beiko, Alex Stokes, and Barnabé Monnot, who have been formally assigned to lead the new focus areas within the Protocol division.

Strategic Vision Behind the Restructuring

Positioning for Mass Adoption

The Ethereum Foundation characterized this restructuring as a pivotal moment for the blockchain network. With significant advances in zero-knowledge rollups (zkEVMs) and layer-2 technologies, Ethereum is positioning itself for large-scale adoption.

The Foundation emphasized the importance of this moment, stating that it “may be Ethereum’s best shot at deploying not only our technology, but our values, at planetary scale.”

Addressing Development Challenges

The restructuring acknowledges the complex nature of protocol development, with the Foundation noting that “shipping protocol” is inherently messy and requires proactive responses to demands that are difficult to articulate and fulfill.

Recent Leadership Changes at Ethereum Foundation

January 2025 Leadership Model Updates

The current restructuring follows earlier organizational changes initiated by Ethereum co-founder Vitalik Buterin in January 2025. These changes aimed to shift the Foundation’s leadership model toward greater technical expertise and improved developer communication.

April 2025 Governance Restructuring

A more comprehensive structural adjustment occurred in April 2025, when the Ethereum Foundation formalized the separation between its board and executive functions. The organization appointed two new co-executive directors:

  • Hsiao-Wei Wang: A longtime Ethereum researcher
  • Tomasz Stańczak: CEO of infrastructure company Nethermind

Under this governance model, the board (including Buterin) focuses on long-term vision setting, while the executive team manages day-to-day operations.

Ethereum Foundation Restructuring
Ethereum Foundation Organization Chart Source: Ethereum Foundation

Impact on Ethereum’s Development Roadmap

Focus on Critical Infrastructure

The restructuring reflects Ethereum’s commitment to addressing key technical challenges that could determine its success in achieving mainstream adoption. The three focus areas directly address current limitations in scalability, data availability, and user accessibility.

Preparation for zkEVM and Layer-2 Growth

With zero-knowledge rollups and layer-2 solutions showing significant promise, the Protocol team’s focus on blobspace expansion positions Ethereum to support the growing ecosystem of scaling solutions built on top of the main network.

Looking Forward

The Ethereum Foundation’s restructuring represents a strategic response to the evolving blockchain landscape and the approaching potential for mass cryptocurrency adoption. By streamlining operations and focusing resources on critical development areas, the Foundation aims to ensure Ethereum remains competitive and technically robust.

The success of this restructuring will likely be measured by the Protocol team’s ability to deliver meaningful improvements in the three identified focus areas while maintaining the decentralized ethos that has defined Ethereum’s development philosophy.

As the blockchain industry continues to mature, organizational efficiency and strategic focus become increasingly important for major protocol developers. The Ethereum Foundation’s latest changes reflect this reality while positioning the network for its next phase of growth and adoption.