Compass Mining to cut staff by 15% and cut management salaries

Bitcoin mining equipment and services provider Compass Mining announced the layoff of 15% of its employees andcutting costs.

Senior employees and the executive team agreed to a 50% pay cut, according to the statement.

«Although these changes are painful, they will allowCompass remains flexible and well-positioned in this evolving market, which is challenging many of our industry peers,” wrote interim CEOs Thomas Heller and Paul Gosker.

At the end of June, the firm announced the resignations of CEO Whitt Gibbs and CFO Jody Fisher, citing "numerous failures and disappointments."

Compass is also in the process of being settleda dispute with the hosting provider Dynamics Mining, which terminated the agreement on the placement of equipment with the company. According to the company, this is about 1% of the contracted capacity. Compass manages over 30,000 client miners.

Explaining the changes, Heller and Gosker stated thatthe company grew too quickly, but its service turned out to be «not where it should be». They also noted «the recent market downturn and expected conditions».

«When we launched, we were amazed by the level of demandon our services, and as a result, tried to eliminate 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 conscientiouscontent providers and will partner with those who care about the companies from which they receive dollars. The most important factor moving forward is providing our customers with exceptional services and benefits.

Recall how the collapse of the price of bitcoin affected large miners and what are the future prospects for the industry, ForkLog analyzed in the material.

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