Ongoing trouble within the cryptocurrency space has forced Compass Mining to put off 15% of their employees while top executives and staff take major pay-cuts.
The firm announced its decision to downscale its workforce inside a bid to weather difficult market conditions, only a week following the resignation of Chief executive officer Whit Gibbs and chief finance officer Jodie Fisher.
Chief technology officer Paul Gosker and chief mining officer Thomas Heller took within the reins in the firm as interim co-presidents and CEOs. The duo penned instructions to staff, investors and also the wider community outlining their road ahead.
While 15% from the company’s workforce faces difficult layoffs, the acting CEOs also announced that senior employees and it is executive team will require significant pay cuts as high as 50%. The Compass Mining website presently displays its workforce — with 78 individuals creating the present team.
Cointelegraph has arrived at to the organization to determine the precise quantity of staff which will leave the company.
Compass Mining started operations in The month of january 2021 like a mining hosting service. Up to now, it’s offered over half a billion dollars of mining equipment and presently operates greater than 30,000 mining machines because of its customers.
Gosker and Heller’s message highlighted a fateful pitfall from the business’s initial success, since it’s efforts to upscale to satisfy growing demand brought to the organization growing too rapidly:
“When we launched, i was astonished by the amount of interest in our services, and for that reason, we attempted to deal with the operational, financial and technology bottlenecks faced by all growing companies by hiring more and more people.”
Compass may be the first mining firm to announce job cuts among the continuing downturn across cryptocurrency markets, but it’s only some of the casualty within the ecosystem.
Related: Another miner cashes in: Argo Blockchain reports selling 637 BTC to pay for financial obligations
As formerly reported, a number of high-profile firms are in opposite ends from the spectrum. The likes of major exchanges Binance, Ripple and Kraken are searching to boost their workforces, while Gemini, Coinbase and Crypto.com have started reducing their staff figures.
Numerous major mining companies are also made to sell servings of their Bitcoin (BTC) holdings as a result of cryptocurrency market sell-offs since June.
