Circle Cuts 5% of Workforce Despite $226M Profit in Q3

Stablecoin issuer Circle reduced its workforce by roughly 5% in the third quarter of 2026, according to disclosures in its third-quarter financial results released on Nov. 4 ¹. The company stated in financial table footnotes that the layoffs were intended to align its structure with its operational model and strategic goals, though it did not specify the exact number of personnel or business units affected ¹. Circle recognized $9.1 million in restructuring charges during the period, driven primarily by severance packages, notice-period expenses, and benefits, which were partially counterbalanced by a $5.7 million reversal in forfeited stock compensation ¹.

The reductions occurred alongside strong headline profitability ¹. Circle reported third-quarter net income from continuing operations of $226 million, marking a 5% increase year over year, while total revenue and reserve income climbed 17% to $865 million ¹. Adjusted EBITDA advanced 85% compared to the prior year to reach $317 million ¹. Core reserve income fell 8% to $658 million due to lower interest rates on underlying reserves ¹. Non-core expansion bridged the gap: secondary revenue reached $207 million, supported by $182 million generated through the presale of ARC, the native token for Circle's Arc blockchain network ¹.

Shifting Market Share and Institutional Expansion

Circulation of $USDC ended the quarter flat at $73.9 billion, even as its average circulation expanded 8% year over year to $73.3 billion ¹. The company noted its share of the US dollar stablecoin sector dipped to 27% ¹. Despite the contraction in overall market share, Chief Executive Officer Jeremy Allaire stated on Nov. 4 that USDC processed 79% of all stablecoin transaction volume during the quarter, compared to 66% in the same period the previous year ¹. Allaire also highlighted that Circle's payments infrastructure handled $41 billion in annualized volume, representing a fifteenfold expansion ¹.

The organizational trim follows a broader round of infrastructure deployments ¹. In September, Circle rolled out the public mainnet for the Arc blockchain alongside validators including Visa, BlackRock, and DTCC ¹. In October, Allaire outlined plans to expand operations into roughly 40 emerging markets, followed by an integration with payments processor ACI Worldwide to test USDC settlements on Colombia's domestic instant-payment rail ¹. Circle is also preparing for the implementation of the GENIUS Act, which Allaire confirmed takes effect in January 2027 ¹.