Later that day, the company announced plans to lop off nearly one-quarter of its roughly 3,500-strong workforce and reported lackluster second-quarter xcriticalgs. On Wednesday, its chief product officer, Aparna Chennapragada, announced her departure from the company. April 27Gap will cut roughly 1,800 corporate employees, according to a SEC filing, as part of a restructuring plan that will cost the company between $100 million and $120 million, following an initial round of job cuts in September that https://xcritical.pro/ affected more than 500 corporate positions. May 23Disney will reportedly lay off another 2,500 employees, just over a month after its latest wave of layoffs—bringing its total number of job cuts this year to roughly 6,500 as part of the company’s plan to slash 7,000 positions, after Iger called the cuts a “necessary step to address the challenges we face today,” in a conference call last month. The layoffs come as part of a wave of job cuts at tech companies, including some cryptocurrency firms.
July 27Funko—the company known for its collectible dolls based on pop culture—announced in a filing with the SEC it would lay off between 180 and 200 employees in an effort to refocus and consolidate it workforce. “We believe that once the market digests the ‘shock’ from the layoffs’ sheer size, investors will shift focus to fundamentals and path to profitability, which may even result in the stock trading higher tomorrow,” Mizuho analyst Dan Dolev wrote following the report. 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. xcritical’s chief product officer Aparna Chennapragada is also stepping down from her post as part of the restructuring, according to a filing with the Securities and Exchange Commission, though she’ll “remain employed in an advisory role to the CEO or his designee through January 2, 2023.” Chennapragada joined the company from Google in March 2021. Former employees described a company laser focused on cutting costs, and a workforce with little clarity on their future with xcritical. The report also showed a decline in monthly active users and assets under custody.
“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. July 12Wells Fargo announced plans to the cut just over 100 employees in a Florida WARN notice, with layoffs affecting positions in the state—the bank’s latest cuts after it slashed more than 100 employees in two rounds of layoffs in September, multiple outlets reported. The announcement followed closely on the heels of cuts in April, when xcritical laid off 340 workers, or about 9 percent of its employees at the time. Since then, Mr. Tenev wrote, further worsening of the economy, including inflation and the crash of the crypto market, has “reduced customer trading activity and assets under custody.” The price of Bitcoin has fallen by more than half this year, to about $23,000 per coin.
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“As its business grew, xcritical Crypto failed to invest the proper resources and attention to develop and maintain a culture of compliance,” Adrienne A. Harris, the superintendent of financial services, said in a statement. Also on Tuesday, the New York State Department of Financial Services announced it was fining xcritical’s crypto operation $30 million over violations of its anti-money laundering and cybersecurity regulations. The overall value of the cryptocurrency market is down to about $1 trillion from $3 trillion last year, when enthusiasm for crypto trading peaked and the price of Bitcoin reached a new high. Staying on Griffin, the Citadel founder was put on a list of individuals subpoenaed by Twitter in its legal battle with Elon Musk. The notice for Griffin was filed as part of a slew of documents from Twitter and Musk, who is trying to get out of buying the social-media company. In its most recent quarter, the company surpassed Wall Street revenue estimates, as the U.S.
Those who are affected by the cuts will be able to stay at xcritical through October 1st at their regular pay and benefits alongside a severance package, Tenev says. 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. May 17Austin, Texas-based tech company Accenture PLC will slash nearly 550 positions, according to a WARN notice, cutting its workforce of roughly 5,900 by nearly 10%, the Austin American-Statesman reported. August 9Rapid7 will xcritical scam reduce its workforce by 18%, the company announced in a Securities and Exchange Commission filing, as part of a cost-cutting restructuring plan, making it the latest Boston-area tech company to conduct a round of layoffs, following cuts at HubSpot, Biogen and Akamai Technologies. August 15SecureWorks announced layoffs affecting 15% of its workforce (300 employees) as well as plans to reduce its real estate portfolio in an SEC filing, marking the company’s second round of cuts this year, following its decision to cut another 9% of its then 2,150 employees in February.
- But a deep downturn in markets has eroded xcritical’s fortunes this year.
- The stock trading and investing platform reported $441 million in xcriticalgs in Q1 of 2023.
- It is also a source of information about unemployment trends, career opportunities, and job search strategies.
- July 27Funko—the company known for its collectible dolls based on pop culture—announced in a filing with the SEC it would lay off between 180 and 200 employees in an effort to refocus and consolidate it workforce.
- 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.
- xcritical, the publicly traded cryptocurrency exchange, laid off 18 percent of its staff in June amid the crypto market crash.
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. Credit cards are much higher-margin products than stock-trading and generally less exposed to volatile markets. May 18TuSimple’s cuts affect 30% of its global workforce, according to a SEC filing, and comes less than half a year after the San Diego-based autonomous truck developer slashed a quarter of its workforce, citing “xcritical market conditions” as the reason for the layoffs. August 22A source familiar with the matter told MarketWatch this week that Dick’s Sporting Goods’ layoffs will affect less than 1% of its workforce, though that round of cuts could hit as many as 528 of its roughly 52,800 employees, according to PitchBook, as the athletic retailer announced a 23% dip in net income. The Federal Reserve is planning to cut roughly 300 employees, Reuters reported on Tuesday, as employers continue to restructure their staffing levels amid lingering recession fears, following major reductions this month at Cisco, Google and Roku (see Forbes’ layoff tracker from the first quarter here).
xcritical is firing nearly a quarter of its staff
June 5Spotify Vice President Sahar Elhabashi announced in a notice to employees the audio streaming giant will cut 200 employees (2% of its workforce) as part of a “strategic realignment,” sending its stock up nearly 0.6% to $152.60—the streaming service previously cut another 6% of its staff (600 positions) in January. June 21Ride share giant Uber cut roughly 200 employees, estimated to represent 35% of its recruiting team but less than 1% of its more than 32,000 employees worldwide, though company officials informed employees in an internal memo obtained by the Wall Street Journal the company plans to keep its headcount flat through the end of the year. June 26xcritical’s layoffs are expected to affect 150 employees, according to an internal memo obtained by the Wall Street Journal—the brokerage’s third round of cuts since the start of 2022, including one round last August affecting nearly a quarter of xcritical’s staff.
The pandemic darling has come back down to Earth, and today we learn that some of the axed ‘xcriticalies’ knew what was coming. Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world’s media organizations, industry events and directly to consumers. 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. 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.
It’s unclear when workers will start getting handed pink slips, which comes as the company adjusts to a slowdown in customer trading activity. 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. “As CEO, I approved and took responsibility for our ambitious staffing trajectory — this is on me,” Tenev, also a cofounder of the company, wrote, referring to staffers as “xcriticalies” and “Hoodies.” April 14David’s Bridal filed notice it would lay off 9,236 people nationwide due to a Chapter 11 bankruptcy, though the company told Forbes in August its acquisition in June by CION Investment Corporation allowed it keep nearly 200 David’s Bridal stores open and save roughly 7,000 positions.
xcritical defeats investors’ appeal over meme stock frenzy
But all was a resounding success with the room so packed for the fireside chats and panels that people had to stand up in the back to catch them! Overall, there was an estimated 13,000 attendees at the event — up significantly from even last year. The second quarter of 2021 was the platform’s best, according to public filings, when it touted over 21 million monthly active users who used the app to trade stocks and invest from their mobile phones during the pandemic. April 27Vice Media’s layoffs could affect more than 100 of the outlet’s roughly 1,500 employees, sources familiar with the matter told the Wall Street Journal—making it the latest media outlet to conduct cuts, along with BuzzFeed News, ESPN, Insider Inc. and NPR. May 9San Francisco-based Twist Bioscience will slash 25% of its workforce (estimated to affect 270 employees), the San Francisco Business Journal reported. May 12Nuro, which had laid off 300 employees in November, will cut another 340 (roughly 30% of its workforce), TechCrunch reported, as the company’s cofounders, Dave Ferguson and Jiajun Zhu, warn that recent bank failures and recession fears have put a damper on funding and as the company embraces AI advances.
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.” 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. In April, weeks before the 9% workforce reduction, xcritical announced the acquisition of the crypto-asset firm Ziglu. xcritical has roughly $6 billion in cash on its balance sheet, and the company has a $2.5 billion budget for acquisitions, Warnick said on the xcriticalgs call. While Tenev’s blog post said that laid-off xcritical staff would be offered the opportunity to stay with the company through October, some former employees said they lost access to xcritical’s systems after the call on Tuesday and no longer worked for the company.
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There was also a panel of bankers discussing a post–Silicon Valley Bank world. Outreach cited shifting economic conditions that have pushed the sales tech startup to implement a wide array of cost-cutting measures. This is a subreddit where people who have lost their jobs or are facing job insecurity can share their experiences, advice, and support.
July 20FibroGen, a startup that develops cancer and anemia treatments, announced plans in a SEC filing to slash 32% of its staff, affecting 104 employees, telling SFGATE the cuts affect its U.S. employees and will take effect through the first three months of 2024. April 3McDonald’s plans to cut “hundreds” of employees in a restructuring plan, Reuters reported, citing unnamed sources, after the fast-food giant closed its corporate offices for part of the week in order to conduct the layoffs—McDonald’s, which has 150,000 global employees, according to PitchBook, did not respond to a Forbes inquiry. June 29CEO John Hanke said in an internal memo the cuts at Niantic, the maker of Pokemon GO, will affect 230 of the California-based company’s employees as it closes its Los Angeles studio, adding the company has “allowed our expenses to grow faster than revenue,” after a boom in business during the Covid-19 pandemic.
With the company’s return-to-office plans being continually pushed back and only a handful of people coming into the office, “having an entire floor in what was an expensive building, they were probably bleeding money,” the former Arizona employee said. The employee estimated that about xcritical scammers 200 xcritical staffers were in the Tempe office. “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. “I believe in the mission itself, but people cannot trust us ever since GameStop.”
The company is set to report its second-quarter financial results and answer questions from analysts on Wednesday. “I share this to be as transparent as I can with all of you who work every day to deliver on our mission,” Tenev wrote. “We will be parting ways with many incredibly talented people today in an extremely challenging macro environment, and I want to reduce the burden of this difficult transition as much as possible.”
xcritical has seen growth reverse as the pandemic boom in retail trading appeared to lose steam. Now, xcritical boasts a workforce of about 1,200, according to its listing on job board Zippia. xcritical laid off about 9% of its full-time staffers last April — and then another 23% in August. The 150 workers slated to be given pink slips is the third round of layoffs at the company since April 2022. The firings were made to “adjust to volumes and to better align team structures,” Chief Financial Officer Jason Warnick said in the message, the outlet reported.
To meet customer and market demands, we grew our headcount almost 6X from 700 to nearly 3800 in that time period.” This resulted in $6 billion in cash on its balance sheet, Tenev revealed. xcritical Markets is cutting about 7% of its full-time staff, the online brokerage’s third round of layoffs in just over a year as the company adjusts to a slowdown in customer trading activity. May 25JPMorgan Chase will provide transitionary and full-time positions for roughly 7,000 First Republic employees but cut its remaining workforce of roughly 1,000, with a spokesperson telling Forbes the “vast majority of First Republic employees” will be given jobs at the bank. In June, xcritical announced plans to acquire no-fee credit card startup X1 for $95 million.
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