Ongoing disputes in the cryptocurrency space have forced Compass Mining to lay off 15% of its employees while senior executives and staff take major pay cuts.
The company announced its decision to cut its workforce in a bid to weather tough market conditions, just a week after the resignations of CEO Whit Gibbs and Chief Financial Officer Jodie Fisher.
Chief Technology Officer Paul Gosker and Chief Mining Officer Thomas Heller took the reins of the company as co-presidents and interim CEO. The duo wrote a letter to staff, investors and the wider community outlining the company’s path forward.
As 15% of the company’s workforce faces tough layoffs, the interim CEOs also announced that senior executives and its leadership team will take deep pay cuts of up to 50%. The Compass Mining website currently displays its workforce – with 78 people making up the current team.
Cointelegraph has contacted the company to determine the exact number of employees who will leave the company.
Compass Mining started operations in January 2021 as a mining hosting service. To date, it has sold over half a billion dollars worth of mining equipment and currently operates over 30,000 mining machines for its customers.
Gosker and Heller’s post highlighted a fatal pitfall to the company’s initial success, as its efforts to scale up to meet growing demand led the company to grow too quickly:
“When we first launched we were surprised by the level of demand for our services and as a result we tried to solve the operational, financial and technological bottlenecks that all growing businesses face by hiring more of people.”
Compass is the first mining company to announce job cuts amid the current downturn in cryptocurrency markets, but it’s not the only victim of the ecosystem.
Related: Another Miner Cashes In: Argo Blockchain Reports It Sold 637 BTC To Pay Off Debts
As noted earlier, a slew of top companies sit at opposite ends of the spectrum. Exchanges like Binance, Ripple, and Kraken are looking to bolster their workforces, while Gemini, Coinbase, and Crypto.com have started downsizing.
A number of major mining companies have also been forced to sell some of their Bitcoin (BTC) holdings in response to the sell-off in the cryptocurrency market since June.