The Ethereum Foundation has reduced its budget by 40% and trimmed its workforce by around 20%, signaling a major shift in the organization’s structure. These changes come alongside several key leadership departures throughout 2026.
On June 23, the foundation announced cutting about 54 jobs to sharpen its focus exclusively on core protocol development, handing other roles to independent entities. This follows the exit of co-executive director Tomasz Stańczak in February and leadership team member Hsiao-Wei Wang in June. Over the year, eight senior researchers have left, including five in May alone.
Reshaping Ethereum’s future
Just a day before the layoffs, EthLabs, a new independent research group, launched to take on some of the foundation’s prior responsibilities. Financially, the foundation converted 5,000 ETH into stablecoins in April to secure operational funding for about 2.5 years ahead. Meanwhile, Ethereum’s protocol development presses on; the Pectra upgrade went live in May 2025, Fusaka followed in December, and the next major upgrade, Glamsterdam, is planned for late 2026.
This restructuring could reduce centralization concerns and encourage the broader ecosystem to take a more active role. But losing so many senior researchers raises questions. If protocol upgrades like Glamsterdam face delays or quality dips, investors might see this move more as a sign of instability than maturity.
This content is for informational purposes and does not constitute financial advice.
