Ethereum Foundation Undertakes Staff Layoffs to Focus on Key Protocol Challenges

Key Takeaways

The Ethereum Foundation is restructuring its research & development team to focus more on protocol design issues critical to the Ethereum ecosystem, as outlined in a blog post released on Monday.
This restructuring follows leadership changes in the foundation due to community backlash regarding its management.
Critics have raised concerns for over a year that the Ethereum blockchain - once a clear frontrunner in technology - might lose its competitive edge if it does not promptly address its fundamental design issues.

Summary of Restructuring

The Ethereum Foundation has laid off various members of its R&D team as part of a broader restructuring aimed at focusing on essential protocol design challenges. This comes in light of ongoing criticism regarding its management and strategic direction. Concerned members of the Ethereum community have warned for over a year that neglecting critical technical challenges could jeopardize Ethereum’s position as an industry’s leader. The foundation is renaming its Protocol Research and Development division simply to “Protocol” and is focusing on three primary objectives: enhancing scalability, expanding blobspace, and improving user experience.

“The changes we’re announcing today are a departure from our previous ways of working, but we feel these set us on a more responsive and effective path,” the foundation stated in its release.

The number of staff impacted by the layoffs remains undisclosed, but the post mentioned that some members from the Protocol Research & Development team will no longer be with the Ethereum Foundation. The organization hopes those individuals will find opportunities within the Ethereum ecosystem to continue their contributions.

Moreover, the new Protocol team will serve as a central hub for Ethereum’s primary development efforts with the intention of improving the transparency of upgrade timelines and technical documentation.

“We’re hopeful that this new structure will empower our internal teams to focus more clearly and drive key initiatives forward,” commented Hsiao-Wei Weng, co-executive director at the EF in a post on X.