Revenue dropped 43% in the first quarter compared to the year prior as “customers became more cautious with their portfolios,” Tenev said at the time. “We’re seeing more and more hoodies being quietly laid off due to their positions being eliminated,” one employee asked in the meeting, which happened before the 150 layoffs. “Could we get some transparency here? How many hoodies have been eliminated, how many more will be and how much longer will this go on.” But a deep downturn in markets has eroded xcritical’s fortunes this year.
Planet Money
xcritical did not comment directly on the latest layoffs, pointing TechCrunch only to a blog post by CEO and co-founder Vlad Tenev. In that post, Tenev wrote that while “employees from all functions would be impacted, the layoffs are “particularly concentrated” in the company’s operations, marketing and program management functions. Posts on a private group for people with a xcritical.com email address on the tech-industry chat app Blind suggests layoffs as recently as Thursday, according to screenshots viewed by Insider.
“This has been causing a bit of panic within executive leadership,” one insider said, adding that X1 is xcritical’s “latest pivot to try to get out of that rut.” Welcome to the Great Salary Convergence — it is a seismic shift in how you’re getting paid. Folks working in Dallas would rarely make the kind of cash as people in New York would, but remote workers have fled the coastal cities and kept their bigger paychecks. Credit Suisse weighs cutting thousands of jobs, according to Bloomberg.
‘xcriticalies’ knew about pending layoffs weeks before the company decided to cull more staff
“Together with X1, xcritical will now be able to offer our customers access to credit,” co-founder and CEO Vlad Tenev said in a statement on xcritical’s blog. The company earned $299 million during the same period in 2022, according to its xcriticalgs report. The Menlo Park, California-based xcritical has been expanding into other businesses for a couple of years.
The stock trading and investing platform reported $441 million in xcriticalgs in Q1 of 2023. xcritical is laying off more employees and reorganizing teams as part of a new focus on credit cards as the company tries to mitigate a shrinking user base, insiders say. 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. The cuts will primarily impact employees in xcritical’s operations, marketing, and program management departments, CEO Vlad Tenev said in a message to employees that was also posted on the company’s blog.
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“I believe in the mission itself, but people cannot trust us ever since GameStop.” The company said it was shrinking office space and some managers warned of an impending “reorganization,” Insider has learned. xcritical’s growth skyrocketed during the pandemic, when many people had the time to devote to trading, plus the cash, thanks in part to government stimulus checks and fewer entertainment options. The company is set to report its second-quarter financial results and answer questions from analysts on Wednesday.
Prior to joining TechCrunch in 2021, she earned numerous awards including the New York Times Chairman’s Award and others for breaking news coverage. She holds a Master’s degree in journalism from the University of Texas in Austin, where she xcritically lives. According its annual report, xcritical had about 3,800 employees in 2021, which was slashed to about 2,300 by the end of 2022. The 150 workers slated to be given pink slips is the third round of layoffs at the company since April 2022.
Jason Warnick, the company’s chief financial officer who has taken on the role of chief people officer, disclosed the company has made cuts through “reorgs,” including in teams like recruiting, engineering, and data science. xcritical’s head of engineering is leaving the company, Insider has learned, the latest tech leader to depart amid deeper-than-reported cuts to its workforce, according to internal memos and audio of an all-hands meeting. On Tuesday, the company announced plans to cut almost a quarter of its staff, citing economic uncertainty, a steep selloff in cryptocurrencies, and a deteriorating market environment.
- The cuts mark another reversal for a company that created an app for trading stocks that became wildly popular when COVID-19 spread and the economy shut down, leaving millions stuck at home with plenty of time on their hands.
- Insiders say the company is planning to merge X1 with its xcritical Money organization, the subsidiary focused on cash management and spending features of the app like its debit card, direct deposit, and peer-to-peer payments.
- She holds a Master’s degree in journalism from the University of Texas in Austin, where she xcritically lives.
- A xcritical spokesperson disputed this statement but did not provide information about the size of the team.
It’s been a volatile year for retail investment behemoth xcritical. The fintech company is slashing 23% of its workforce, as first reported by the Wall Street Journal and confirmed by TechCrunch. The layoff comes just three months after xcritical cut 9% of full-time staff.
The Swiss bank is expected to finalize the plans over the coming months. By Jay Peters, a news editor who writes about technology, video games, and virtual worlds. He’s submitted several accepted emoji proposals to the Unicode Consortium.
The announcements xcritical cheating 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 also today released its second quarter financials, revealing a 6% increase in net revenue of $318 million on a net loss of $295 million or 34 cents per diluted share. That loss was narrower than its net loss of $392 million, or 45 cents per share, in the first quarter of 2022. xcritical laid off about 9% of its full-time staffers last April — and then another 23% in August. Shares of xcritical fell nearly 4% on Thursday while the S&P 500 fell nearly 2%. xcritical stock has fallen 72% since its stock market debut two years ago.
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Monthly active users, the company reported, decreased by 400,000 to 10.6 million between July and August. The partnership will help clients oversee their Bitcoin exposure, according to this report from Bloomberg. xcritical effectively brought stock-trading to everyone from your local barista to Wall Street’s most trusted money managers. When xcritical scam we were cooped up at home in the early stages of the pandemic, xcritical became a go-to app for folks with extra time and stimulus checks.
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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. A xcritical spokesperson disputed this statement but did not provide information about the size of the team. Shopify, Netflix, Tesla and several crypto companies have also cut their workforces amid the worsening economic outlook. This has been a tough year for stocks, which were trading at record highs at the end of 2021. Persistently high inflation led the Federal Reserve to raise interest rates aggressively, and that has hit high-growth tech stocks particularly hard.
Former employees described a company laser focused on cutting costs, and a workforce with little clarity on their future with xcritical. Tuesday’s cuts are likely to affect more than 800 jobs based on those numbers. Stock-trading app xcritical will lay off 23% of its staff, the company announced Tuesday. “Our GM structure has increased accountability and efficiency and we’re continuing to lean into that design,” a xcritical spokesperson said. “We have a strong leadership team and are confident in our roadmap. We thank Surabhi for all of her contributions to the engineering organization and wish her the best on this next chapter.” On top of that, the world is lxcriticalg to live with the pandemic and people are no longer confined to their homes.