Depends of course! Instead of asking for a number of circles, observe how well the circles are currently maintained. Are the aims and domains clear enough and enough people to take care of policy and operations as needed for the organization to function? Can each parent circle sustain and pay attention to all of its sub-circles? Does double-linking create a general circle or parent circles that are too big to function? Are people overwhelmed with the number of meetings, with a sense of fragmentation of the whole?
If too many of these are true, reducing circles might be one of the possible solutions.
For more information, check out our handbook Many Voices One Song chapter 2