USD
Circle Cuts 5% of Workforce Despite $865 Million in Q3 Revenue
ARC token presale boosts earnings as USDC reserve income declines
TL;DR
- Circle reduced its workforce by approximately 5% while reporting $865 million in third-quarter revenue and reserve income, up 17% year over year.
- Net income reached $226 million, supported by $182 million in ARC token presale revenue, even as USDC reserve income declined.
- The company recorded $9.1 million in restructuring expenses while expanding its Arc blockchain and stablecoin payments operations.
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Circle Internet Group, the issuer of the USDC stablecoin, disclosed on November 4, 2026, that it had cut approximately 5% of its workforce despite posting higher third-quarter earnings. Total revenue and reserve income rose 17% year over year to $865 million, while net income from continuing operations reached $226 million. The company reported the reductions alongside restructuring charges and continued investment in its blockchain and payments businesses.
Circle Discloses Workforce Cuts During Profitable Quarter
Circle revealed the layoffs in a footnote to its quarterly financial statements, saying the workforce reduction was "designed to better align our organizational structure with our operating model and strategic priorities."
The company recorded $9.1 million in restructuring expenses, primarily for employee notice-period payments, severance, benefits and related costs. Those charges were partly offset by a $5.7 million reversal of stock-based compensation linked to unvested shares forfeited by departing employees.
Circle did not provide the exact number of affected employees or identify the teams involved. Its annual report listed approximately 1,100 employees worldwide at the end of 2025.
CEO Jeremy Allaire did not address the layoffs in his earnings comments or his public post about the results. Instead, he characterized the period as "a big quarter for Circle," highlighting the company's stablecoin activity, blockchain development and payments expansion.
The job cuts came as Circle's net income increased 5% from the comparable period a year earlier. Adjusted EBITDA also rose sharply, benefiting from token presale revenue and lower distribution costs, partially offset by investments in new products.
ARC Token Presale Revenue Helps Offset Lower USDC Reserve Income
Circle's financial results showed growth in revenue outside its core stablecoin reserve business, alongside falling returns on the assets backing USDC.
The company previously reported $701 million in total revenue and reserve income for the second quarter. Its latest results included higher operating expenses, reflecting increased administrative, information technology infrastructure and marketing costs.
Key financial figures from the earnings release were as follows:
Circle attributed the decline in reserve income to lower interest earned on the assets backing USDC, with its reserve return rate falling by 61 basis points. Lower distribution payments helped reduce costs during the quarter.
Revenue recognized from the ARC token presale contributed significantly to the company's results. Circle booked $182 million from the presale during the quarter and agreed to sell a total of $242.2 million worth of ARC tokens at $0.30 per token, implying a $3 billion fully diluted valuation.
Circle maintained its full-year 2026 guidance, including other revenue of $310 million to $330 million and adjusted operating expenses of $570 million to $585 million.
USDC Transaction Volume Grows as Circle Expands Arc and Payments Network
Circle reported higher USDC transaction activity despite slower growth in the stablecoin's circulating supply and a decline in its share of the U.S. dollar stablecoin market.
The company's earnings figures and additional operating metrics shared by Allaire showed the following:
Circle also advanced development of its Arc blockchain, opening the network's public mainnet on September 16 with more than 100 institutional and ecosystem builders involved at launch. BlackRock, DTCC and Visa were among the permissioned validators.
Circle minted an initial supply of 10 billion ARC tokens, calling the issuance a technical milestone rather than a commitment to a public token launch. The company expects Arc to transition from proof of authority to proof of stake in 2027.
Allaire linked Circle's platform expansion to the incoming U.S. stablecoin framework, writing:
"In January, the GENIUS Act takes effect and regulated digital dollars go mainstream." He added, "Every layer of our platform is live and ready for it."
Circle's expansion also included an agreement in September to acquire Singapore-based payments company Tazapay, which handles more than $25 billion in annualized payment volume. The acquisition is expected to close in 2027, subject to regulatory approvals. Circle Ventures previously led Tazapay's $36 million Series B extension in March.
Binance separately purchased $100 million worth of Circle shares in September and entered a new five-year USDC agreement with the stablecoin issuer.
Allaire said in October that Circle planned to enter approximately 40 emerging and developing markets. The company has also partnered with payments technology provider ACI Worldwide to pilot USDC settlement through Colombia's instant-payments network.
Circle Joins Broader Crypto Industry Workforce Reductions
Circle's layoffs followed workforce reductions at several other cryptocurrency companies during the year, with employers citing restructuring, changing market conditions and increased use of artificial intelligence.
Coinbase reduced its workforce by 14% in May, with CEO Brian Armstrong pointing to the crypto market downturn and the company's adoption of AI. The Ethereum Foundation cut 20% of its staff in June as part of an organizational restructuring, while digital asset custody provider BitGo reduced headcount by 15% that month to focus on AI and stablecoins.
Cryptocurrency exchange Luno cut approximately one-fifth of its global workforce in July, citing automation. Crypto ETF issuer Bitwise subsequently reduced its workforce by 14% in August.
This article has been refined and enhanced by ChatGPT.
