Circle Internet Group reduced its workforce by about 5% in the third quarter, according to a disclosure in its earnings report. The company recorded a $9.1 million restructuring charge covering notice-period pay, severance and benefits, and said the changes were intended to align its organization with its operating model and priorities. It did not disclose how many employees were affected or which teams were impacted.
Revenue rose 17% year over year to $865 million, while net income increased 5% to $226 million. However, the headline growth was supported by a one-time item: Circle reported $182 million in revenue from the private presale of ARC, the token for its Arc blockchain. The report said revenue would have declined without that presale.
Income from the reserves backing USDC fell 8% to $658 million as the reserve return rate dropped 61 basis points to 3.5%. Average USDC in circulation grew 8% to $73.3 billion, while the amount in circulation at quarter-end was unchanged year over year at $73.9 billion. Circle’s share of the fiat-backed stablecoin market declined to 27%.
Operating expenses increased 16% to $245 million, while distribution costs fell 8% to $409 million. Circle’s workforce reduction comes as it develops Arc, integrates an asset acquisition completed in January and prepares to acquire Tazapay, a Singapore-based cross-border payments platform. The Tazapay deal is expected to close in 2027.
Circle said Arc’s public mainnet launched on September 16 with more than 100 institutional builders. The company also minted the full 10 billion ARC supply. Its shares fell about 1.2% in premarket trading to $74.33 after gaining 4.4% on Tuesday.
Sources: Bitcoin Magazine.