Compass Mining retrenches 15% of staff, execs to take major pay-cuts

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The ongoing conflict in the cryptocurrency space has forced Compass Mining to lay off 15% of its workforce, while top executives and employees have taken major pay-cuts.

Just a week after the resignations of Chief Executive Officer Whit Gibbs and Chief Finance Officer Jody Fischer, the firm announced its decision to reduce its workforce to weather tough market conditions.

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Chief Technology Officer Paul Gosker and Chief Mining Officer Thomas Heller have taken over the reins of the firm as interim co-president and CEO. The two wrote a letter to employees, investors and the wider community outlining the way forward for the company.

While 15% of the company’s employees face difficult layoffs, the executive CEO also announced that senior employees and its executive team will take a significant pay cut of up to 50%. The Compass Mining website currently displays its workforce – with 78 individuals making up the current team.

Cointelegraph has reached out to the company to find out the exact number of employees leaving the business.

Compass Mining began operations in January 2021 as a mining custody service and has sold over half a billion dollars worth of mining equipment to date and currently operates over 30,000 miners for its customers.

Gosker and Heller’s message highlighted a fatal pitfall of the business’s initial success, as the company was growing too quickly because of its efforts to meet growing demand:

“When we launched, we were amazed by the level of demand for our services, and as a result, we attempted to address the operational, financial and technology barriers faced by all growing companies by hiring more people. “

Compass is the first mining company to announce job cuts amid the ongoing downturn in the cryptocurrency markets, but it is not the only crash in the ecosystem.

Related: Another Miner Cashed In: Argo Blockchain Reportedly Selling 637 BTC To Pay Off Debt

As mentioned earlier, many high-profile firms are on opposite ends of the spectrum. The likes of major exchanges Binance, Ripple and Kraken are looking to bolster their workforces, while Gemini, Coinbase and Crypto.com have begun reducing their workforce.

Several major mining companies have also been forced to sell part of their bitcoin (BTC) holdings in response to the selloff in the cryptocurrency market since June.