Circle Cuts 5% of Staff, Books $9.1M Restructuring Cost as Reserve Income Falls 8%

Circle's first disclosed workforce cut lands in a profitable quarter, which frames it as margin management rather than distress — but the 8% decline in reserve income is the more telling figure, since that revenue line is tied to interest earned on backing assets rather than transaction growth. For a stablecoin issuer, that mix matters: cost discipline can offset a softer revenue base only so far. The open question is whether reserve income keeps sliding in step with rate expectations, and whether the restructuring signals a broader reset in how Circle sizes its cost base against that revenue.