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(C): X
If you’re earning money well, then you must have a job. But not today. In addition to announcing its third-quarter results on November 4, 2026, the USDC issuer announced that it will be cutting about 5% of its workforce. The Circle layoffs came at a time of increased revenue and increased profit, and many employees are wondering: as a business does well, why are people losing their jobs?
Quick Facts
- Provisional: November 4, 2026 (Q3 results)
- Workforce reduction: About 5%
- Restructuring charge: $9.1 million – primarily severance, notice pay and benefits
- Estimated impact: approx. 55 people – based on an estimated 1,100 staff at the end of 2025 (not confirmed)
- Q3 income from operations: $159 million, or 176 basis points, representing a 17% increase.Q3 reserve income: $865 million, a 17% increase.
- Net income from continuing operations: $226 million – up 5%
- Adjusted EBITDA: $317 million (+85%)
What Circle Actually Disclosed
The company described it as reflecting the company’s structure with its operating model and strategy. It did not state how many staff were impacted, or when or which staff departments were affected. The only hard dollar is the restructuring charge of $9.1 million, which is not included in adjusted EBITDA.
Why a Profitable Crypto Company Still Cut Jobs
The headline revenue number is misleading as it conceals a more nuanced story. In total, $865 million was raised, with $182 million being from the presale of the ARC token, which is associated with Circle’s Arc blockchain. The rate of interest paid on the assets that support USDC (the Reserve Income) dropped by 8% to $658 million. USDC supply held steady at $73.9 billion.
Remove the token presale, and it’s easy to see that the base of revenue was smaller than it was a year ago. It is no surprise, in all of that, that the Circle corporate restructuring has been completed. Total operating expenses were up 16% to $245 million, mainly due to general and administrative costs, IT infrastructure, depreciation and marketing. When income relies on interest rates, one measure that has an immediate effect is cutting down on the staff – hence the Circle layoffs despite record profits.
The Numbers Employees Should Watch
- The amount of compensation expense decreased 4% from $126.6 million to $124.1 million when compared to the prior year.
- Stock-based compensation: $5.7 million less for forfeited restricted stock units, which are equity shares that are subject to vesting terms and conditions, and upon which the executives’ departure triggered a forfeiture.
- Hiring has not actually ceased with the start of the stock compensation range being expected to be dependent in part on incremental hires at Circle.
This appears to be more a restructuring of funds and personnel than a company biding its time.
Not the First Round
Circle’s ratio of cuts to its workforce is the latest in a series of reductions in July 2023, when it reduced non-core activities, and in December 2024, when it reduced under 6% of its workforce. The fact that three rounds in three years indicates that there needs to be a certain level of recalibration, rather than just an ad hoc shock.
What the Circle Layoffs 2026 Mean for Crypto Workers
The takeaway for anyone weighing crypto sector employment trends is that it is not a win-win situation: profitability does not equal job security. Given that most of the revenue for stablecoin issuers comes from stablecoin interest on reserves, lower interest rates can lead to a squeeze on revenue even in the face of apparent profitability. Fintech and blockchain companies should consider:
- Revenue mix: What is the portion of revenue that is generated from the interest rates and one-time token sales?
- Working-capital management: How efficient is the company at managing its working capital?
- Company revenue: How is the company’s revenue being generated?
If you are cut, what will happen to the unvested shares?
The Bottom Line
The Circle cuts illustrate that even a successful business can make some restructuring decisions to safeguard margins and refocus. As an employee, the best thing you can do is be aware, know how your employer makes money, keep your skills up-to-date and realise that a high salary is just one indicator, not the only one.
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