Ethereum Foundation cuts about 20% of staff in sweeping overhaul as ETH stays under pressure
The Ethereum Foundation (EF) has wrapped up a broad reorganization that reduced headcount by roughly 20%—about 54 roles across multiple teams—while reshaping its operating structure under a refreshed mandate and treasury strategy.
In a Tuesday blog post, EF said the months-long restructuring is complete and introduced a new operating model built around five core clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Two additional clusters will oversee corporate and operational functions. EF said each cluster comes with clearly defined responsibilities, accountability mechanisms, and internal structures designed to better align staffing and priorities with the Foundation's updated direction.
Ethereum co-founder Vitalik Buterin wrote on X that the staff reductions are part of a wider effort to curb costs. EF plans to significantly lower spending, cutting annual outlays from around 15% of the remaining treasury before 2026 to a long-term target of 5% after 2030. The Foundation is also reducing its budget by about 40% this year. Buterin said the move carries real tradeoffs, pushing back on framing the layoffs as a simple "efficiency" exercise: "I respect my EF colleagues far too much to pretend that there was not much that is lost," he wrote.
EF said impacted employees will receive severance and transition support, consistent with assistance previously provided to departing team members.
ETH remains technically weak after the announcement. On the 4-hour chart, the token is trading below the 20-, 50- and 100-period exponential moving averages, near $1,753, $1,901 and $2,064, respectively. Price is also below a previously broken descending trendline around $1,729 and a horizontal resistance band near $1,741, leaving the broader bearish structure intact.
Near-term support is seen at $1,611. A decisive break could open the door to $1,524, with additional downside levels at $1,404 and, in a sharper sell-off, $1,155. Until buyers reclaim key resistance areas, the chart setup suggests ETH remains vulnerable in the near term.
EF's overhaul underscores a strategic push to extend treasury runway through deep spending cuts and a leaner organization, even as ETH's technical picture keeps traders focused on critical support and resistance levels.
