Key takeaways Circle eliminated approximately 5% of its workforce Restructuring costs reached $9.1 million despite higher profits CRCL investors weigh strong earnings against declining reserv
Circle Internet Group, the company behind the USDC stablecoin, disclosed that it cut approximately 5% of its workforce during the third quarter of 2026, even as revenue climbed and quarterly profit exceeded Wall Street expectations.
According to Circle's November 4 earnings release, the restructuring generated $9.1 million in expenses, primarily covering employee severance, notice periods, benefits and related costs.
Circle Cuts Jobs Despite $226 Million Quarterly ProfitCircle said the workforce reduction was designed to align its organizational structure with its operating model and strategic priorities.
The company did not disclose the exact number of affected employees. Based on approximately 1,100 workers reported at the end of 2025, a 5% reduction would represent roughly 55 positions, although the actual figure depends on staffing levels when the cuts occurred.
The restructuring coincided with substantially stronger headline financial results.
Circle reported $865 million in third-quarter revenue and reserve income, up 17% year over year, while net income increased 5% to $226 million.
Adjusted EBITDA jumped 85% to $317 million, reflecting lower distribution costs and revenue associated with its Arc blockchain.
However, the earnings increase masks an important change in Circle's underlying business.
Reserve income, generated primarily from assets backing USDC, declined 8% to $658 million as the company's reserve return rate fell to 3.5%.
Meanwhile, other revenue surged to $207 million, including $182 million recognized from an ARC token presale.
That distinction matters because the token sale provided a substantial one-time boost rather than recurring interest income.
Earlier analysis of Circle's revenue model highlighted how distribution expenses and interest rates affect profitability even when stablecoin usage expands.
CRCL Stock Reacts as USDC Growth SlowsCRCL shares closed November 3 at $75.22, gaining approximately 4.36% during the session.
<iframe src=”https://widgets.coincodex.com/w/ea5d0526-ccd3-44fa-bbbd-c47b38fdf5f9?site=coinpaper&mode=light” width=”100%” height=”420” frameborder=”0” referrerpolicy=”no-referrer-when-downgrade” style=”border:0;background:transparent;border-radius:0px;”></iframe>The stock subsequently attracted premarket buying following Wednesday's earnings announcement, although early trading remained volatile.
Investors are evaluating whether Circle's expanding financial infrastructure can compensate for weaker returns on stablecoin reserves.
Average USDC circulation increased 8% to $73.3 billion, but the quarter-end supply remained essentially unchanged year over year at $73.9 billion.
Meanwhile, USDC's market share declined to 27%, down approximately 1.83 percentage points.
The slowdown contrasts with Circle's earlier regulatory expansion, which helped strengthen its position in the institutional stablecoin market.
The company also continues expanding distribution through a $100 million Binance investment and a five-year commercial partnership.
Can Circle's Arc Blockchain Support CRCL Stock?Circle is attempting to reduce its dependence on reserve income through payments infrastructure, blockchain services and tokenized financial applications.
Its Arc blockchain launch attracted more than 100 institutional and ecosystem builders, while Circle Payments Network reached $41.3 billion in annualized transaction volume.
The company also plans to acquire Singapore-based payments provider Tazapay, subject to regulatory approval.
However, Arc's early revenue contribution does not establish that the business can repeatedly generate similar token-sale proceeds.
The distinction is particularly relevant as ARK Invest recently purchased Circle shares during the broader cryptocurrency market correction.
