Compass Mining to cut 15% of workforce and reduce executive pay

Bitcoin mining equipment and services provider Compass Mining announced it would lay off 15% of staff and cut costs.

Changes at Compass Mining: A Message from co-CEOs @thomasheller_ and @TerminalCipher https://t.co/gag55POurJ

— Compass Mining 🧭 (@compass_mining) July 7, 2022

According to the statement, senior staff and the executive team agreed to a 50% pay cut.

“Although these changes are painful, they will allow Compass to remain nimble and hold strong positions in this developing market that challenges many of our peers in the industry,” wrote interim co-CEOs Thomas Heller and Paul Gosker.

In late June, the firm announced the resignation of CEO Witt Gibbs and CFO Jodi Fischer, citing “numerous missteps and disappointments.”

“While these changes are painful, they will allow Compass to remain nimble and hold strong positions in this developing market that challenges many of our peers in the industry,” wrote interim co-CEOs Thomas Heller and Paul Gosker.

Compass also is in the process of settling a dispute with hosting provider Dynamics Mining, which terminated a hosting agreement with the company. By the firm’s claim, this relates to roughly 1% of contracted capacity. Compass manages more than 30,000 client miners.

Explaining the changes, Heller and Gosker said the company had grown too quickly, but its service was “far from where it should be.” They also noted “the recent market slump and the expected conditions.”

“When we launched, we were struck by the level of demand for our services, and as a result we tried to address operational, financial and technological bottlenecks that all growing companies face by hiring more people,” the statement said.

Among other measures, Compass will reduce marketing spend:

“We will place greater emphasis on reputable content providers and will work with those who care about the companies from which we earn dollars. The most important factor moving forward is delivering exceptional services and benefits to our clients”.

As noted in the article, ForkLog examined how the Bitcoin price slump affected major miners and the industry's prospects.

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