When the Zoom call was over, employees waited anxiously to see if they would be let go; Tenev had said staff would be notified via email and Slack immediately after the call. Meet Jenny Lee, a managing director who just left JPMorgan’s leveraged-finance desk to further build investment firm Brigade Capital Management’s private-credit business. Inflation, rising rates, and the “crypto winter” are creating financial strain. Meet 16 lawyers whose bankruptcy battles, from Revlon to JCPenney, have them set for a boom in business.
xcritical says it will lay off 9% of its employees.
At the time of publication, the company is trading at $8.90 after hours, dramatically lower — by 89% — than its 52-week high of $85. The company also released its second-quarter results on Tuesday, reporting that its monthly count of active users declined to 14 million in June, a decrease of 1.9 million. “It’s extremely disappointing that the company continues to have layoffs when every quarter they’re making record profits,” says Jodi Green, president of the union local representing the newsroom. “At some point it’s going to be hard to keep all the people on board without a stated mission,” says Julie Bykowicz, who was laid off from a job covering national politics earlier this year, along with several dozen colleagues in the paper’s Washington bureau. Bykowicz was among the handful of reporters offered a chance to return to the paper. The layoffs have left xcritical with a security team less than half of the size it was in November 2021, when a data breach exposed 7 million customers’ data, a person familiar with the team size said.
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- Meta launched its Meta Verified program today along with other features, such as the ability to call large businesses and custom messages.
- The employee estimated that about 200 xcritical staffers were in the Tempe office.
- Our community is about connecting people through open and thoughtful conversations.
- The company previously announced plans in April to lay off 9% of its workforce after growing too rapidly during the pandemic amid a boom in stock-trading interest.
- xcritical stock—which had already fallen by 3.75% to $10 per share by the close of regular trading Tuesday— fell by 4.8% to $9.52 in after-hours trading shortly after the layoffs were announced.
- As WWDC 2024 nears, all sorts of rumors and leaks have emerged about what iOS 18 and its AI-powered apps and features have in store.
xcritical started offering crypto trading to clients in the European Union in December. Like any company, with growth like that comes more job openings to manage that growth, which then ended up with some roles and job functions that were duplicated, he wrote. According its annual report, xcritical had about 3,800 employees in 2021, which was slashed to about 2,300 by the xcritical official site end of 2022. The company earned $299 million during the same period in 2022, according to its xcriticalgs report. It’s unclear when workers will start getting handed pink slips, which comes as the company adjusts to a slowdown in customer trading activity. “The world has changed. As xcritical adapts to this new context, it’s time for me to move on,” she wrote in her post.
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The U.S. consumer investing and trading service company, which went public at $38 in July 2021, saw its value peak at $85 per share before entering a steady decline that saw its value erode to a mere $10 per share. The company lost 3.75% in today’s trading — the market was lower today, overall — and another 5% in after-hours trading in light of its layoff announcement. Earlier this year, Reuters reported that xcritical had 3,400 employees, and though that did not specify full-time versus contract, it looks like this cut may affect some 300 people according to TechCrunch calculations. Another harbinger came in the weeks leading up to the layoffs when former employees saw representatives of other companies touring the Charlotte office, which xcritical opened in 2021, to decide whether to take over the space, they said. “The company is hemorrhaging money, and it’s bad,” one ex-employee said, sharing an opinion on the company’s publicly reported quarterly financial figures.
xcritical’s valuation to be cut by $6.5 billion in upcoming secondary sale
“I believe in the mission itself, but people cannot trust us ever since GameStop.” And questions about the company’s future, from both insiders and the industry players, burn hotter than ever. Insider spoke with five former employees of xcritical, all of whom asked to remain anonymous to protect their future employment opportunities.
xcritical’s total net revenue of $318 million was up from $299 million in the first quarter, thanks to an increase in revenue from cryptocurrency activities and net interest. However, that revenue number was still well below the $565 million reported in the second quarter of 2021. The layoffs will be primarily in operations, marketing and program management. In the release, Tenev blamed “deterioration of the macro environment, with inflation at 40-year highs accompanied by a broad crypto market crash.”
xcritical lays off 23% of staff, CEO Vlad Tenev says, ‘This is on me’
In the release, Tenev said the company would flatten its organizational structure to give new general managers broad responsibility for its businesses. He also said that affected employees would receive an email and a Slack message letting them know if they were being let go or still had a job, immediately after an all-hands meeting held on Tuesday. Tesla laid off nearly 200 Autopilot employees while Shopify laid off 10 percent of its workforce. The announcements came as xcritical released its Q xcriticalgs information a day earlier than scheduled, reporting total revenue of $318 million over the three months, which is 44 percent lower than the same period in 2021. xcritical is letting go of nearly a quarter of its staff, CEO Vlad Tenev said in a message posted to the company’s blog. Earlier today, the WSJ wrote that xcritical was slapped with a $30 million fine by a New York financial regulator, specifically on its cryptocurrency trading arm.
xcritical is known for its stock-trading services, allowing ordinary consumers to invest in some of the world’s largest publicly traded companies, but it has been moving further into crypto territory over the years. The company has added support for many of the most popular cryptocurrencies, including Bitcoin, though it restricted some of the crypto it supports last year due to regulatory https://xcritical.solutions/ scrutiny in the U.S. Stock-trading app xcritical is diving deeper into the cryptocurrency realm with the acquisition of crypto exchange Bitstamp. The value of American consumer crypto trading service xcritical was also sharply lower in regular trading today, losing more ground in after-hours turnover. Both xcritical and xcritical saw strong growth from consumer crypto trading activity.
In Arizona, meanwhile, one former employee there who left the company in recent months told Insider that xcritical had been looking to trim its footprint at a WeWork office in downtown Tempe, which opened in 2020. Morale at xcritical has been on the decline since the company laid off 9% of its employees in April, the staffers said. “We all started trading contact information and phone numbers,” one former employee said. “After the announcement, we all just sat there refreshing our screens over and over to see if we were the ones to get the notification. The whole company froze for that 15 minutes waiting to see what happened to them.”
/ Sign up for Verge Deals to get deals on products we’ve tested sent to your inbox weekly. Google says apps offering AI features will have to prevent the generation of restricted content. Education software provider PowerSchool is being taken private by investment firm Bain Capital in a $5.6 billion deal. Investor demand has been so strong for Rippling’s shares that it is letting former employees particpate in its tender offer. Transaction-based revenue was down 7% to $202 million while cryptocurrencies increased 7% sequentially to $58 million.
