Circle Cuts 5% of Staff Despite Profitable Quarter
Circle quietly laid off 5% of its workforce, hiding the cuts in a financial footnote despite reporting a highly profitable quarter.
Layoffs · Source: CoinDesk
What happened
Circle, the company behind the USDC stablecoin, laid off about 5% of its workforce. The company buried this news in a footnote of its third-quarter earnings release. CEO Jeremy Allaire did not mention the job cuts in his public comments celebrating a big quarter. The company simply noted the reduction was designed to align its structure with its operating model.
The layoffs happened even though Circle had a highly profitable quarter. The company reported a net income of $226 million, which is up 5% from a year earlier. Total revenue and reserve income also rose 17% to $865 million. To cover the layoffs, Circle recorded $9.1 million in restructuring expenses, mostly for severance and employee benefits.
Circle did not say exactly how many employees lost their jobs or which specific teams were cut. This move follows a broader trend of crypto firms reducing staff this year. Coinbase cut 14% of its workforce in May, while the Ethereum Foundation and BitGo also made deep cuts. Even as Circle expands into emerging markets, it is keeping its overall headcount tight.
By the numbers
- 5% — Portion of Circle's workforce laid off in the third quarter.
- $9.1 million — Restructuring expenses, mostly for severance and notice-period payments.
- $226 million — Circle's net income from continuing operations for the quarter.
- 14% — Portion of staff cut by Coinbase earlier in the year.
Why it matters
This situation proves that a company making a profit does not guarantee job security for its workers. Job seekers and current employees cannot rely solely on strong earnings reports to feel safe in their roles. Companies are willing to cut staff to restructure or shift focus, even when revenues are growing and leadership is publicly praising the company's performance.
The broader crypto industry continues to shed jobs despite market expansions and new product launches. Firms like Circle are launching new blockchain networks and expanding globally while simultaneously reducing their workforce. This means hiring in the tech sector may become highly targeted toward specific new initiatives rather than general headcount growth.
Who this hits
Current tech employees
You might face sudden layoffs even if your company is doing well financially. Keep your resume updated and maintain a strong professional network just in case your role is eliminated during a quiet restructuring.
Crypto job seekers
General hiring remains tight as companies prioritize efficiency and new technology over large teams. You will need to target roles tied directly to a company's new strategic priorities to find open positions.
Laid-off Circle staff
Affected employees are receiving severance and notice-period payments to help bridge the gap. However, they are entering a tough job market where other major crypto firms have also recently reduced their workforces.
What to do this week
- Update your resume and professional profiles regularly, even if your current employer is highly profitable.
- Build a financial safety net to protect yourself against sudden layoffs that happen without public warning.
- Focus your job search on specific, high-priority projects within tech companies, as general hiring is slowing down.
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My take
A company reporting strong profits does not mean your job is safe. Circle hid these cuts in a footnote while publicly celebrating a big quarter. Your real job security comes from keeping your skills sharp and always having a backup plan ready.