Ethereum Foundation Lays Off R&D Staff Amid Protocol Restructuring

  • Ethereum Foundation has laid off some research and development staff as part of a restructuring.
  • The organization is renaming its Protocol Research and Development division to “Protocol.”
  • The new focus is on scaling Ethereum’s core network, improving data availability (“blobspace”), and user experience.
  • No exact numbers of layoffs were disclosed, but impacted employees were encouraged to remain in the Ethereum ecosystem.
  • The changes come in response to ongoing criticism about management, leadership shifts, and the need to address technical challenges.

Ethereum Foundation announced on Monday that it has released a number of employees from its research and development team. The move takes place as the Switzerland-based nonprofit begins a broader restructuring to focus on key protocol design issues.

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The organization will rename its Protocol Research and Development group to “Protocol” and shift its attention to three priorities: increasing the main network’s capacity to handle more transactions, expanding “blobspace”—an essential component for efficient data storage—and making the user experience better.

In a blog post, the foundation stated, "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 post did not specify how many staff members were impacted, but noted that, "[S]ome members of PR&D won’t be continuing with the Ethereum Foundation. We hope these individuals continue on in the Ethereum ecosystem and encourage others building out their teams to seek them out." A spokesperson did not return requests for further comment.

The restructured team will serve as a hub for Ethereum’s technical development and provide more transparency regarding planned upgrades and technical documentation. According to the team’s new portal, the focus will include clearer research progress and community communication.

Leadership changes within the Ethereum Foundation have taken place over the past year, partly in response to criticism about the group’s management and direction. Members of the Ethereum community had warned that failing to address technical hurdles could impact Ethereum’s position in the crypto industry.

According to Hsiao-Wei Weng, co-executive director at the foundation, “We’re hopeful that this new structure will empower our internal teams to focus more clearly and drive key initiatives forward.” Further details on staffing numbers or additional restructuring plans were not provided.

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