The ongoing struggles in the cryptocurrency sector have forced Compass Mining to lay off 15% of its employees, while senior executives and staff are undergoing significant pay cuts.
The company has announced its decision to reduce its workforce in an attempt to weather difficult market conditions, just a week after CEO Whit Gibbs and CFO Jodie Fisher resigned.
CTO Paul Gosker and Mining Director Thomas Heller have taken the reins of the company as interim co-chairmen and CEOs. The duo have drafted a letter to staff, investors and the wider community outlining the way forward for the company.
While 15% of the company’s workforce faces tough redundancies, the acting CEOs also announced that senior employees and their executive team will take significant pay cuts of up to 50%. Compass Mining’s website currently shows its headcount, with 78 people making up the current team.
Cointelegraph has contacted the company to find out the exact number of employees who will be leaving the business.
Compass Mining began operations in January 2021 as a mining hosting service. To date, it has sold over $500 million worth of mining equipment and currently operates over 30,000 mining machines for its clients.
Gosker and Heller’s message highlighted a fateful stumbling block to the business’s early success, as their efforts to scale to meet growing demand led the company to grow too quickly:
“When we started, we were surprised by the level of demand for our services, and as a result, we tried to solve the operational, financial and technological bottlenecks that all growing companies face by hiring more people.”
Compass is the first mining company to announce job cuts amid the current slump in crypto markets, but it is not the only victim in the ecosystem.
As previously reported, a number of high-profile companies are at opposite ends of the spectrum. Major exchanges like Binance, Ripple, and Kraken are trying to beef up their headcount, while Gemini, Coinbase, and Crypto.com have started downsizing.
Several major mining companies have also been forced to sell some of their Bitcoin (BTC) holdings in response to cryptocurrency market sell-offs since June.
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