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Ethereum Foundation undergoes major restructuring, cuts staff and budget

The overhaul followed leadership resignations and cut 54 roles, trimming about 40.0% of its annual operating budget.

Reported · Written up by our desk · Market Structure

CoinDesk reports that the Ethereum Foundation entered 2026 facing sustained criticism from developers, investors, and community members over its pace of execution, governance, and technical priorities, with concerns that its roadmap had tilted too heavily toward layer-2 scaling at the expense of base-layer improvements.

According to CoinDesk, the foundation’s first shakeup came in February when co-executive director Tomasz Stańczak said he would step down after helping lead an initial restructuring. Soon after, the foundation published a new mandate built around the CROPS framework, positioning the organization as a long-term steward rather than the ecosystem’s primary builder or coordinator.

CoinDesk says that the leadership transition was followed by a significant turnover period, with nine senior leaders, researchers, and executives leaving over subsequent months. Speculation about the foundation’s future grew even as remaining leadership said the changes were part of an organizational reset rather than a sign of decline.

In June, CoinDesk reports that co-executive director Hsiao-Wei Wang resigned and the foundation announced its largest restructuring to date. The move cut roughly one-fifth of its workforce by eliminating 54 positions, reduced its annual operating budget by about 40.0%, and reorganized remaining staff into five core operating groups aligned with what the foundation said it alone could support.

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