Circle Internet Group, the New York company behind the USDC stablecoin, cut about 5% of its workforce in the third quarter. The disclosure sat in a footnote to earnings that showed profit rising.
The cuts cost $9.1 million, mostly severance and notice pay. They land as Circle’s main income, interest earned on the cash and Treasuries backing USDC, shrinks. CRCL shareholders own a business that earns about three-quarters of its revenue that way.
Why Did the Circle Layoffs Come in a Quarter When Profit Grew?
Circle tied the cut to matching its structure with its strategy and operating model, according to its filing.
The top-line numbers look strong. Net income from continuing operations rose 5% to $226 million. Total revenue and reserve income climbed 17% to $865 million.
However, a one-off did much of the lifting. Circle booked $182 million from a presale of ARC, the token for its Arc blockchain, which launched September 16.
Strip out that and other non-interest revenue, and reserve income fell to about $658 million from roughly $711 million a year earlier, by the filing’s figures.
The rate Circle earns on reserves dropped to 3.5%, down 0.61 percentage points. Every Federal Reserve rate cut lowers the yield on the Treasuries behind USDC.
Can USDC Growth Cover Circle’s Rising Costs?
USDC in circulation ended September at $73.9 billion, flat from a year earlier. Its share of the dollar stablecoin market slipped 1.83 points to 27%.
Meanwhile, operating expenses rose 16% to $244.9 million. Circle kept its full-year adjusted expense guidance of $570 million to $585 million, saying the final figure depends on hiring.
This is not Circle’s first trim. It cut “less than 6%” of jobs in December 2024.
The filing does not mention artificial intelligence (AI). In May, though, CEO Jeremy Allaire said 85% of Circle staff used AI tools weekly.
“I think we’re very early in the impact of AI agents on the conduct of work and how that plays out through labor.”
Distribution costs, the interest Circle passes to partners that distribute USDC, fell to $409.2 million from $447.2 million.
What Is Circle Betting On Beyond Interest Income?
Circle is pushing newer lines. Its payments network hit $41.3 billion in annualized volume, and it agreed to buy payments firm Tazapay.
The results land in a week of crypto earnings reports from Block, Circle, and Riot Platforms. Circle still guides for 40% yearly USDC growth over several years, a target it left unchanged despite flat circulation.
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