The Ethereum Foundation is reducing its annual budget by roughly 40% and cutting about 20% of its staff as part of a sweeping restructuring intended to turn the nonprofit into a leaner, endowment-based organization.
The organization said in a blog post Tuesday that 54 employees are leaving following a months-long restructuring process. Its remaining work will be organized around five divisions focused on Ethereum’s protocol, access, users, community and institutional adoption.
Ethereum co-founder Vitalik Buterin said on X the cuts reflect a deliberate shift away from the Foundation’s historically high spending rate rather than a simple attempt to eliminate inefficiencies.
“This year, the EF is decreasing its budget by roughly 40%, which entails some difficult decisions,” Buterin wrote in a post on X.
The reductions implement goals established in the Foundation’s treasury management policy last year. The EF is moving away from spending an average of roughly 15% of its remaining funds annually before 2026 and toward a target spending rate of approximately 5% after 2030.
