Circle, the issuer of the USDC stablecoin, said today it will cut less than 6 percent of its workforce following a strategic review of investments and operational expenses. Layoffs are part of broader moves in the crypto space to reduce costs as markets evolve.
Circle, according to a Bloomberg statement, said the layoffs were part of the “regular reviews to optimize operations. ” A company spokesperson told TechCrunch that to support growth, the company is realigning resources to global expansion and new product development.
Circle did not reveal how many employees were affected but earlier reported it had 882 employees as of June 2023. The reduction is due to the firm’s strategic shifts in a competitive market.
“Circle regularly reviews our investments and expenses. This includes investing in teams and operational infrastructure that need to grow, while marginally reducing spend and some roles in other areas of the business.”
Circle’s spokesperson
While we cut costs and laid off people, I would like to stress that we remain committed to geographical and product expansion and are even more excited about the future. They’ve been looking into stablecoin issuance in new regions, including Japan, and even trying to increase their Asian presence.
USDC Growth Efforts Align With Market Adaptation
In 2023, Circle received a Major Payment Institution (MPI) license in Singapore, enabling it to deliver local and cross-border money. Circle is well aware of the importance of growth, and these efforts show that it is taking measures to trump success in new markets.
Like other cryptocurrency firms, Circle’s workforce reductions reflect wider industry cuts during tough markets. Fellow crypto entities such as Polygon Labs also staff up and down. The cuts reflect an industry leaning toward efficiency as crypto companies contend with economic uncertainty and a shifting regulatory playing field.
Stablecoin remains a big player. It currently has a circulating supply of $40.4 billion in its USDC token, the second largest stablecoin with $135.7 billion of its tokens in circulation.
Stablecoins pegged to traditional assets such as the US dollar make cryptocurrency trading and payment possible. The stablecoin market is, therefore, worth approximately $203 billion and holds a great deal of importance within the wider crypto sphere.
While Circle’s dismissal of nearly 100 employees is certainly newsworthy, it appears to be a well-calculated move by the company to position itself to thrive long-term. Given the changing industrial sports of crypto, Circle’s roadmap to augment the greater and more innovative stanch in stablecoin will play a key role in the future of blockchains.
