The Ethereum Foundation has announced a restructuring of its research and development team, resulting in layoffs. This strategic move aims to tackle critical protocol design challenges and refine the foundation's strategic direction. The restructured team, now named 'Protocol,' will focus on scaling Ethereum's base layer, expanding blobspace, and enhancing user experience. Based in Switzerland, the foundation has faced criticism over its management and has undergone leadership changes. While the exact number of staff affected was not disclosed, the foundation expressed hope that those laid off will continue to contribute to the Ethereum ecosystem. The restructuring is intended to improve public visibility into upgrade timelines and advance key initiatives.