Ethereum Foundation Cuts 20% of Staff in Major Restructuring as ETH Price Remains Weak

Headline: Ethereum Foundation completes major reorganization, cuts about 20% of staff as it tightens spending — ETH price stays under pressure The Ethereum Foundation (EF) has finished a wide-ranging reorganization that trims roughly 20% of its workforce — about 54 employees across multiple teams — and reshapes how it runs operations as part of a new mandate and treasury strategy. What changed - The Foundation says the months‑long restructuring is now complete. In a blog post published Tuesday, EF outlined a new operating model organized into five core clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Two additional clusters will manage corporate and operational functions. - Each cluster is built with distinct responsibilities, accountability frameworks and internal structures tailored to its goals, the EF said, reflecting the Foundation’s effort to align people and priorities more tightly with its updated mandate. Why the layoffs happened - Ethereum co‑founder Vitalik Buterin told followers on X that the staff reduction is part of a broader cost‑cutting strategy. The EF intends to sharply reduce spending: annual outlays are being cut from roughly 15% of the remaining treasury before 2026 to a long‑term target of 5% after 2030. - As part of that plan, the Foundation is slashing its budget by about 40% this year. - Buterin acknowledged the human cost of the move, rejecting any suggestion the layoffs were merely an “efficiency” exercise: “I respect my EF colleagues far too much to pretend that there was not much that is lost,” he wrote. - The Foundation said affected staff will receive severance packages and transition assistance, consistent with support previously offered to departing team members. Market impact: ETH technical outlook Ethereum’s price action remains weak following the announcement, with technical indicators pointing to continued downside risk: - On the 4‑hour chart, ETH is trading below the 20‑, 50‑ and 100‑period exponential moving averages (around $1,753, $1,901 and $2,064 respectively). - The token also sits beneath a previously broken descending trendline near $1,729 and a horizontal resistance zone around $1,741, keeping the broader bearish structure intact. - Near‑term support sits at $1,611; a decisive break below that level could expose the next key zone at $1,524, with further downside targets at $1,404 and — in a heavier sell‑off — $1,155. - Unless buyers reclaim key resistance levels, ETH remains vulnerable to further losses in the near term, according to the technical picture. Bottom line The Ethereum Foundation’s overhaul is both strategic and painful: it reorganizes EF operations into focused clusters while dramatically cutting spending and staff to preserve treasury longevity. At the same time, market technicals show ETH remains under pressure, leaving investors watching critical support and resistance levels for signs of stabilization.