The company also cut the salaries of senior employees and the executive team up to 50%

Compass Mining cuts its staff by 15%

08.07.2022 - 11:30

317

1 min

What’s new? Compass Mining, a provider of cryptocurrency mining equipment, has cut its staff by 15%, as well as reduced salaries and marketing costs. Salaries for senior employees and the executive team were cut by as much as 50%. Co-founders Thomas Heller and Paul Gosker noted that the changes would allow the company to maintain its position “in this evolving market, which has challenged many of our industry peers.”

Compass Mining’s blog

What else did the statement say? Heller and Gosker noted that Compass has sold more than half a billion dollars worth of equipment since it began operations in January 2021, but the company, like many others, “grew too quickly” while its service “is not nearly where it needs to be.” They explained that they had been struck by the level of demand for Compass’ services, and, as a result, had tried to address the operational, financial, and technology challenges posed by the need to scale up by hiring more employees.

Heller and Gosker added that employees who have been affected by redundancy would receive financial and non-financial support during the period necessary to find a new job.

Compass will also cut marketing costs by selecting advertising partners more carefully and cooperating only with bona fide content makers.

In April, amid US Treasury Department economic sanctions, Compass announced the sale of $30 million worth of equipment located in Russia because it was not to be subject to export abroad. The capacity of the mining farm in Siberia was estimated at 12 MW.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy