Ethereum Foundation Restructures Core Division Amid Layoffs and Leadership Shift

New 'Protocol' Unit to Overhaul Layer 1 Scaling, Data Availability, and UX

June 3 marked a pivotal shift within the Ethereum Foundation, as it announced a sweeping internal restructuring targeting its Protocol Research and Development division, now rebranded simply as “Protocol.” 

The changes come in response to mounting internal and community pressure regarding the pace of Ethereum’s technical evolution, communication issues, and developer engagement challenges. The reorganization entails staff layoffs, a redefined leadership framework, and a tighter strategic focus on scalability, user experience, and data availability—three pillars seen as vital to the network’s long-term relevance.

Although the Foundation did not provide an exact figure on the number of personnel affected, Ethereum core developer Danno Ferrin indicated through social media that at least four blockchain engineers had been let go. The Foundation’s official statement expressed support for those departing, noting a hope that they remain active in the Ethereum ecosystem and encouraging other projects to consider hiring them. These layoffs are framed as part of a broader effort to streamline operations and foster an organization that can move more swiftly in deploying protocol-level improvements.

The new “Protocol” unit now serves as Ethereum’s primary development coordination hub. Under the revamped structure, Tim Beiko and Ansgar Dietrichs are set to lead Ethereum’s Layer 1 scaling initiatives, with a goal to improve throughput and performance at the base layer. Meanwhile, Alex Stokes and Francesco D’Amato are spearheading enhancements in blobspace—an area focused on improving data availability and unlocking new efficiencies for Layer 2 scalability. 

User experience improvements, a long-standing challenge across Ethereum’s interface layers, are being overseen by Barnabé Monnot and Josh Rudolf. Supporting all three initiatives is Dankrad Feist, who will advise strategically on implementation and integration across the board.

The restructuring is not limited to technical reassignments. Leadership across the Foundation is undergoing a fundamental overhaul aimed at delivering clearer accountability and faster decision-making. Earlier this year, in March, the Foundation appointed Hsiao-Wei Weng and Tomasz—known for founding Nethermind—as co-executive directors. 

Their shared leadership is designed to balance Ethereum’s technical vision with practical operational execution. Aya Miyaguchi, who had served as Executive Director since 2018, now transitions into the newly established role of President, reflecting a shift toward more focused executive oversight.

This strategic pivot comes after more than a year of discontent voiced by developers and contributors. Community frustrations centered around repeated delays in scalability improvements at both Layer 1 and Layer 2 levels, ambiguity surrounding upgrade timelines, and a lack of robust documentation to guide development efforts. 

Stakeholders also flagged a growing disconnect between core contributors and the wider developer ecosystem. As part of its response, the Foundation is introducing improved documentation standards, clearer upgrade roadmaps, and new governance channels designed to enhance transparency and foster more meaningful community participation.

Foundation insiders emphasized that the restructuring does not signal a move away from its open-source ethos or the contributions of external developers. Rather, the shift is about reinforcing a higher bar for internal coordination while embracing a structure that better supports cross-team collaboration and responsiveness to ecosystem needs. The Ethereum Foundation reiterated its broader mission to position Ethereum as a cornerstone of global financial infrastructure and sees the current overhaul as essential to achieving mass adoption.

Voices from within the Foundation highlighted the renewed energy around Ethereum’s development. “The world is ready for the world computer. It’s on us to deliver it,” said Tim Beiko, speaking publicly on X. Hsiao-Wei Weng echoed that sentiment, stating, “We’re hopeful that this new structure will empower our internal teams to focus more clearly and drive key initiatives forward.” These comments underscore a commitment not only to technical progress but to restoring trust and credibility with the Ethereum community.

The changes mark a decisive moment for Ethereum’s future. By centralizing leadership, tightening its development focus, and prioritizing responsiveness, the Foundation is making a clear bid to shift out of what many saw as stagnation—and toward a new phase of disciplined growth and delivery.

This article has been refined and enhanced by ChatGPT.