Circle Fires 5% of Employees in AI Shift Despite Record Q3 2026 Earnings

Circle fires 5% of its employees in the same quarter it posted the biggest revenue figure in its history.

The USDC issuer disclosed the cut on 4 November 2026, alongside third quarter results showing $865 million in total revenue and reserve income.

On paper, the business has never looked stronger.

Underneath, falling interest rates are squeezing its core income, and Circle is leaning on AI to run a leaner operation.

For stablecoin holders, USDC sits right at the centre of this story.

Key Takeaways

• Circle cut about 5% of its workforce and booked $9.1 million in restructuring charges, mostly for severance and notice period pay.
• Q3 2026 revenue rose 17% year on year to a record $865 million, lifted by $182 million from the ARC token presale.
• USDC reserve income fell 8% to $658 million as Federal Reserve rate cuts pushed the reserve return rate down to 3.54%.

Why Did Circle Fire 5% of Its Employees?

The Circle 5% workforce reduction took place during the third quarter and was disclosed with the company's Q3 2026 results.

Circle had roughly 1,100 employees at the end of 2025, putting the cut at an estimated 55 roles.

Circle said the move was designed to better align its organisational structure with its operating model and strategic priorities.

The Circle restructuring cost came to $9.1 million, covering severance, notice period pay, benefits and related expenses.

Circle job cuts in 2026 form part of a broader push to bring AI into how the company operates.

Here's what Jeremy Allaire said about AI automation in May 2026:

• Around 85% of Circle's workforce uses AI coding and automation tools every week.
• Staff had deployed over 600 AI apps that year, more than half built by nontechnical employees.
• He believes the impact of AI agents on work and labour is still at a very early stage.

These are not the first Circle stablecoin layoffs, following a cut of under 6% in December 2024 and a smaller one in July 2023.

This is not a company in retreat.

There is a company rewiring itself while profits are still rising.

Ride every stablecoin shift with confidence when you sign up on Bitrue and trade USDC on a secure, regulated exchange.

Record Q3 Earnings Hide a Shrinking Reserve Engine

Circle Internet Group earnings for Q3 2026 beat analyst expectations on both revenue and earnings per share.

Total revenue and reserve income climbed 17% year on year to $865 million, the highest quarterly total Circle has reported.

Net income from continuing operations rose 5% to $226 million, while adjusted EBITDA jumped 85% to $317 million.

Here's why the headline number needs context:

• USDC reserve income declined 8% to $658 million, even as average USDC in circulation grew 8% to $73.3 billion.
• The reserve return rate fell to 3.54% from 4.15% a year earlier, as Federal Reserve rate cuts lowered yields on the assets backing USDC.
• Other revenue surged to $207 million, with $182 million coming from the Circle Arc blockchain token sale.

That presale revenue was recognised as milestones were met, including the public Arc mainnet launch on 16 September 2026.

According to Bitrue Research Institute, stablecoin revenue remains highly sensitive to Federal Reserve rate cuts, since lower yields shrink income unless USDC supply grows fast enough to compensate.

Usage tells a stronger story, with USDC onchain transaction volume up 49% to $13.9 trillion and a record $208 billion of USDC minted and redeemed in the quarter.

Circle earns yield on the reserves behind USDC, while holders earn nothing on idle coins unless they explore USDC and USDT yield strategies of their own.

How to Trade USDC on Bitrue

USDC remains one of the most liquid stablecoins in crypto, and Bitrue supports it for both trading and earning.

Here's how to get started in five steps:

1. Create an account and complete KYC: Sign up and verify your identity to unlock full access.
2. Fund the account: Deposit USDC through a supported network or convert other crypto.
3. Browse the markets: Find USDC trading pairs on the spot market and check liquidity.
4. Place a market or limit order: Use a market order for instant execution or a limit order to set your entry price.
5. Decide on self custody: Keep USDC on Bitrue to earn daily rewards through Power Piggy, or withdraw it to a personal wallet for full control.

Power Piggy rates and supported assets rotate, so check the current terms before committing funds.

Treat any stablecoin yield as variable, especially while rate cuts keep reshaping returns.

Conclusion

Circle's latest quarter tells two stories at once.

Revenue hit a record, profit grew and USDC usage kept expanding.

Reserve income, the real engine, is shrinking as rates fall, so Circle fires employees and bets on AI to protect its margins.

For traders and holders, USDC itself is not the problem.

The real opportunity is making it work harder.

Bitrue gives USDC holders a secure, regulated place to trade, plus simple ways of staking USDC on Bitrue for flexible daily rewards.

FAQ

What Caused the Circle 5% Workforce Reduction?

Circle cut about 5% of its staff to align its organisation with its priorities as it leans into AI.

How Much Did the Circle Restructuring Cost?

The workforce reduction generated $9.1 million in charges, mainly for severance and notice period pay.

How Much Revenue Did Circle Make in Q3 2026?

Circle reported a record $865 million in total revenue and reserve income, up 17% year on year.

Why is USDC Reserve Income Declining?

USDC reserve income fell 8% because Federal Reserve rate cuts lowered Circle's reserve return rate to 3.54%.

Can I Earn Yield on USDC With Bitrue?

Yes, Bitrue users can earn variable daily rewards on USDC through Power Piggy.

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