Compass Mining reduces employment by 15 percent
Compass Mining reduces employment by 15 percent
In the midst of the Bitcoin crash, Compass Mining fires 15% of its personnel while senior employees and executives take significant salary cuts.
Compass Mining has been forced to lay off 15% of its workforce due to ongoing conflict in the cryptocurrency industry, and top management and workers have also had to accept significant salary cuts.
A week after CEO Whit Gibbs and CFO Jodie Fisher resigned, the company announced its plan to reduce its employees in an effort to weather challenging market conditions.
As temporary co-presidents and CEOs of the company, chief technology officer Paul Gosker and chief mining officer Thomas Heller have assumed control. The pair wrote a letter describing the company's future plans to employees, investors, and the general public.
While tough layoffs will affect 15% of the company's personnel, the acting CEOs also disclosed that the executive team's senior staff will experience severe salary cuts of up to 50%. The current staff of Compass Mining is shown on their website, and there are 78 people on it.
As a mining hosting service, Compass Mining launched in January 2021. It has sold mining equipment worth more than $500 million to far and is currently running more than 30,000 mining units for its clients.
The statement from Gosker and Heller underlined a fatal flaw in the company's early success, as its attempts to upscale to meet rising demand resulted in the company growing too quickly: When we first began offering our services, we were astounded by the level of demand. As a response, we tried to address the operational, financial, and technological obstacles that all expanding businesses have by increasing the number of employees.
Although Compass is the first mining company to announce employment losses in the midst of the continuing bear market for cryptocurrencies, it is not the only victim in the ecosystem.
Numerous well-known companies are located on either end of the spectrum. While Gemini, Coinbase, and Crypto.com have started cutting back on labour, big exchanges like Binance, Ripple, and Kraken are trying to expand their workforces.
Due to the sell-offs in the cryptocurrency market since June, a number of significant mining businesses have also been compelled to sell off a percentage of their Bitcoin (BTC) holdings.
