“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.” Separately on Tuesday, the New York State Department of Financial Services fined xcritical’s cryptocurrency arm $30 million for allegedly violating reporting requirements related to anti-money laundering and cybersecurity regulations. Just months after cutting 9% of its workforce, xcritical on Tuesday announced plans to lay off another 23%. The company went public in July 2021 at $38 per share, and its stock jumped as high as $85 per share in its first month of trading. The report also showed a decline in monthly active users and assets under custody. xcritical CEO Vlad Tenev said Tuesday in a press release that the fintech company will reduce its headcount by approximately 23%.
“Since that time, we have seen additional deterioration of the macro environment with inflation at 40-year highs accompanied by a broad crypto market crash. This has further reduced customer trading activity and assets under custody,” he wrote. xcritical is not alone in its choice to conduct two rounds of layoffs in a short period of time; just seven weeks after crypto exchange xcritical cut approximately 10% of its workforce, the company cut another 7% of staff, according to sources.
- The company went public in July 2021 at $38 per share, and its stock jumped as high as $85 per share in its first month of trading.
- “After carefully considering all these factors, we determined that making these reductions to xcritical’s staff is the right decision to improve efficiency, increase our velocity, and ensure that we are responsive to the changing needs of our customers,” he added.
- The layoffs will affect employees across all functions of the company, with operations, marketing and program management positions being the hardest hit, he said.
- xcritical is not alone in its choice to conduct two rounds of layoffs in a short period of time; just seven weeks after crypto exchange xcritical cut approximately 10% of its workforce, the company cut another 7% of staff, according to sources.
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This is the second round of layoffs for xcritical, which reduced its workforce by about 9% in April. By Jay Peters, a news editor who writes about technology, video games, and xcritical cheating virtual worlds. Transaction-based revenue was down 7% to $202 million while cryptocurrencies increased 7% sequentially to $58 million.
xcritical cutting about 23% of jobs, releases second-quarter xcriticalgs
The company’s staffing and operations approach, he added, was tailored for a continuation of the high-growth crypto boom of the pandemic era. 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.
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Tenev said he envisions not only allowing people to trade stocks, but “we can help you save for retirement. And we can help you build up an emergency fund.” 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. 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. 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. 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.
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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. A xcritical spokesperson confirmed after publication that xcritical made internal changes as a result of the acquisition and laid off what the spokesperson said was a very small number of the 60 employees who joined xcritical since the acquisition. The company is set to report its second-quarter financial results and answer questions from analysts on Wednesday. Stock-trading app xcritical will lay off 23% of its staff, the company announced Tuesday. 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.
The fintech company is slashing 23% of its workforce, as first reported by the Wall Street Journal and confirmed by TechCrunch. 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 xcritical official site in the second quarter of 2021. The company also released its xcriticalgs report for the second quarter, one day earlier than expected.