Compass Mining announced 15% layoffs followed by a significant reduction in salaries
Compass Mining, a Bitcoin (BTC) mining firm, revealed in an announcement that it would be laying off 15% of its workforce, which will be followed by a significant reduction in the compensation of the firm’s executives as well.
According to the letter sent from the interim co-CEOs, Thomas Heller and Paul Gosker, to the firm’s employees, Compass Mining will be implementing significant compensation and spending reductions across the company to survive the current bearish situation prevalent in the crypto market.
The co-CEOs believe that this was the hardest decision that they had to make during their tenure, adding that they will take full responsibility for any changes that the firm makes in the future.
Compass Mining was established in January 2021, and since then, the firm has come a long way, selling over half a billion dollars of mining equipment and currently has 30,000 fully functioning machines and thousands of customers.
The co-CEOs noted in the letter that the firm “grew too quickly,” adding that it hired several employees to “address the operational, financial, and technology bottlenecks” that are faced by startups.
“As we pursued ambitious scaling and growth goals, we failed to deliver the level of trust and service that made us successful in the first place. Given the recent market downturn and anticipated future market conditions, we had to take a hard look at our spend and recalibrate for the future of the business.”Said Thomas Heller and Paul Gosker in the letter.
Immediate changes in Compass Mining
According to the letter, Compass Mining will immediately lay off 15% of the total workforce, and the firm will also provide financial and non-financial assistance to those who are leaving the firm. Furthermore, there will be a reduction in salaries of up to 50% of the firm’s executives as well.
The firm will also partner with “those with high integrity” and aims to deliver exceptional services to its customers.
In the light of this event, it is important to note that Compass Mining was also affected recently by the sanctions imposed by Europe and the US on Russia.