Ethereum’s reset story has moved from leadership shakeups and internal changes to hard cuts at the Foundation. The group behind core Ethereum development says it has eliminated 54 jobs, about 20% of staff. It also plans to reduce its 2026 operating budget by roughly 40%. That takes this from vague reset language to measurable downsizing.
The timing matters. Ether has been trading near $1,550, well below earlier levels this year, with liquidation pressure still part of the backdrop. That doesn’t prove the market caused these cuts. But it does sharpen the bigger question around Ethereum right now: the ecosystem may be entering a more defensive phase, with both the Foundation and the token adjusting to a weaker environment.
So here’s what changed: fewer people, less spending, and a smaller operating footprint. What to watch next is whether core development actually moves faster or more clearly after these cuts. And why this matters is simple: when the organization tied most closely to Ethereum’s development starts cutting this deeply, it becomes part of the story around confidence, execution, and how the network handles a tougher market.