Bitcoin Mining Company Compass cuts staff by 15%
by James · July 7, 2022
Compass Mining announced today that they will reduce employees by 15% and reduce the compensation of managers by up to 50%.
“Today, we have made the difficult decision to reduce the size of the Compass team by 15% and to implement significant compensation and cost reductions across the rest of the business,” wrote Compass co-founders and interim CEOs Thomas Heller and Paul Gosker.
The couple said the changes will enable the hardware mining company to “stay agile” and well positioned in what they call a “developing market.”
“Given the recent market downturn and expected future market conditions, we had to take a closer look at ours [spending] and recalibrate for the future of the business, “they wrote.
According to the post, Compass will provide “financial and non-financial assistance” to those affected by the downsizing.
“The changes we need to make do not only affect our outgoing team members,” the interim CEOs wrote. “Our senior executives and management teams have taken significant pay cuts of up to 50% as part of this process.”
The company cited rapid growth and the subsequent operational, financial and technological bottlenecks as the source of the problems that led to the current announcement.
“We made significant management changes last week to reorient the company,” the post explained. “We publicly raised an issue with a service provider to improve transparency and stop unfounded rumors about the health of our business.”
The “service provider” is probably Dynamics Mining, which took to Twitter last month to blow up Compass for failing to pay the electricity bill at the Maine facility, which Dynamics said was a factor in terminating their contract. Compass denied the allegations.
In June, Compass also announced the resignation of CEO and co-founder Whitney “Whit” Gibbs and CFO Jodie Fisher.
Heller and Gosker said they are committed to implementing the changes quickly and decisively, and continue to apologize and thank Compass’ outgoing employees for their commitment and dedication.
“Of all the decisions we have had to make as new CEOs, this will be the most difficult, and we take full responsibility for all the changes that have been, and will be made, under our leadership,” they wrote.
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