Ethereum Foundation Cuts 20% of Staff, Sets 40% Budget Reduction This Week

According to the Ethereum Foundation, this week the EF announced a 20% staff cut and announced a reorganization around five "clusters"—protocol, access, user, community, and institutional layers. In the same week, Vitalik Buterin flagged a 40% budget cut.

Concurrently, ETHLabs launched as a new non-profit R&D organization aimed at advancing Ethereum adoption and protecting DeFi—a mandate the EF has indicated it no longer prioritizes. The move was welcomed by the community, with observers noting that former EF talent has migrated to the new organization.