Circle Layoffs Hit 5% of Staff in a Profitable Quarter: Why Now?

Circle cut roughly 5% of its workforce in the third quarter even as the company stayed profitable, a move that comes as reserve income declined and USDC’s growth stalled. The stablecoin issuer is trimming costs while its core earnings engine—interest on reserves backing USDC—faces pressure from lower rates. USDC’s circulating supply and market share have plateaued, limiting the fee and float revenue that scale would otherwise provide. The layoffs signal Circle is prioritizing operating discipline over headcount growth as it works to diversify beyond reserve income. Watch next for USDC supply trends, reserve-income disclosure in upcoming filings, and whether cost cuts preserve margins without slowing product expansion.