The "decentralized" Ethereum Foundation has started by laying off its own staff.

In early June, the Ethereum Foundation (EF) announced its first public layoffs and restructured its Protocol R&D team (PR&D), renaming it Protocol. The restructured team will focus on three key areas: Layer 1 scaling, data availability, and user experience, resulting in the dismissal of over ten employees.

The EF stated that this move aims to improve efficiency and strategic focus, but it has triggered a strong backlash from the community. Core developer Peter Szilagyi stated that "developers are the most important asset," while Multicoin co-founder questioned the EF's conflicting goals, and a16z executives publicly suggested that the foundation model is outdated.

This organizational restructuring is the EF's response to long-standing criticisms of its "vague direction, inefficient execution, and centralized governance." Although Vitalik Buterin himself has long stepped back from management roles, there is ongoing debate about his role: is he a guide for the roadmap or a decision-maker with real power?

Meanwhile, researchers like Danny Ryan and core developers like Eric Conner have successively left the organization, and Aya's promotion to chairman of the foundation has also been seen as a "demotion in disguise."

A deeper discussion revolves around whether a non-profit foundation is still suitable for supporting a global network like Ethereum.

Institutions like a16z are calling for accountable, market-driven corporate structures to replace traditional foundations, emphasizing that token incentives, operational efficiency, and transparent governance are the realistic path to "next-generation decentralization." Ethereum is standing at a critical crossroads.