The Ethereum Foundation has announced a significant restructuring of its internal operations, including layoffs within its research and development team. The foundation, which plays a crucial role in Ethereum’s core protocol development, described the decision as part of a strategic shift to refocus on the network’s most pressing technical challenges. However, the layoffs have raised concerns across the crypto community about the foundation’s long-term vision and its ability to maintain Ethereum’s competitive edge.
Strategic Restructuring Amid Persistent Criticism
The Ethereum Foundation revealed the layoffs through an official blog post, stating that “some members of PR&D won’t be continuing with the Ethereum Foundation.” The post encouraged the broader ecosystem to consider hiring the affected developers, signaling a hope that their expertise remains within the Ethereum landscape.
This restructuring comes at a time when the foundation faces criticism over its handling of key protocol upgrades and strategic decision-making. Earlier this year, the nonprofit attempted to address these concerns by appointing Hsiao-Wei Wang and Tomasz Stańczak as co-Executive Directors. Despite this leadership shift, the latest layoffs suggest deeper changes may be underway to realign Ethereum’s development priorities.
Focus on Core Protocol and Scalability
A central part of the restructuring involves rebranding the Protocol Research and Development (PR&D) division to simply “Protocol.” The revamped division will now focus on three priorities: scaling Ethereum’s base layer, expanding blobspace, and improving user experience.
“The changes we’re announcing today are a departure from our previous ways of working,” the Foundation noted, emphasizing the need for a more effective and responsive approach. The new Protocol division is expected to act as a central hub for Ethereum’s core development, providing better transparency around upgrades, technical documentation, and research outputs.
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Industry Reacts with Cautious Optimism
While some in the community view the layoffs as a necessary step for strategic clarity, others question the timing. Multicoin Capital co-founder Kyle Samani highlighted a potential contradiction: reducing staff while aiming to improve scalability and user experience. Meanwhile, Hsiao-Wei Wang expressed optimism, saying the new structure would “empower teams to focus more clearly and drive key initiatives forward.”
The announcement follows Ethereum’s recent Pectra upgrade, which has triggered additional scrutiny over potential vulnerabilities. As Ethereum evolves, the Foundation’s ability to navigate both technical innovation and community trust will be more critical than ever.
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