Bitcoin mining equipment and services provider Compass Mining has announced 15% layoffs and cost cuts.
— Compass Mining 🧭 (@compass_mining) July 7, 2022
According to the statement, senior staff and the executive team have agreed to a 50% pay cut.
«While these changes are painful, they will allow Compass to remain flexible and to be well positioned in this emerging market that is challenging many of our industry peers,” wrote interim co-CEOs Thomas Heller and Paul Gosker.
In late June, the firm announced the resignations of CEO Whitt Gibbs and CFO Jody Fisher, citing «many setbacks and frustrations».
Compass is also in the process of settling a dispute with hosting provider Dynamics Mining , which terminated the equipment placement agreement with the company. According to the firm, this is about 1% of the contracted capacity. Compass manages over 30,000 client miners.
Explaining the change, Heller and Gosker said the company was growing too fast, but its service was «not where it should be». They also noted «the recent market downturn and expected conditions».
«At launch, we were amazed at the level of demand for our services and, as a result, attempted to address the operational, financial and technological bottlenecks that all growing companies face by hiring more people,” the statement said.
Among other measures, Compass will reduce marketing costs:
«We will pay more attention to honest content providers and work with those who care about the companies they earn dollars from. The most important factor in moving forward is to provide our customers with exceptional services and benefits».
Recall how the collapse in the price of bitcoin affected large miners and what the future prospects of the industry are, ForkLog analyzed in
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