Circle Cuts 5% of Staff Despite Profitable Quarter, Books $9.1M Restructuring Charge

Circle, the issuer of the USDC stablecoin, quietly reduced its workforce by 5% during a quarter in which the company remained profitable, according to its latest earnings release. The firm disclosed $9.1 million in restructuring costs tied to the layoffs, while reserve income—a key revenue stream from backing USDC with cash and short-term Treasuries—fell 8%. The cuts signal a strategic shift toward leaner operations even as the company maintains positive net income. Circle’s decision to trim staff during a profitable period highlights the competitive pressures in the stablecoin market, where issuers face rising compliance costs and interest rate volatility. The restructuring charge is a one-time expense, but the decline in reserve income may reflect lower yields on its Treasury portfolio. For investors and crypto market participants, the move underscores that even dominant stablecoin players are tightening budgets to preserve margins. Circle continues to position USDC as a regulated, transparent alternative to rivals like Tether, but the layoffs suggest that growth alone isn’t shielding the firm from broader financial headwinds. As the stablecoin sector awaits clearer U.S. legislation, issuers are likely to prioritize efficiency over expansion.