Compass Mining is the next crypto company to succumb to falling crypto prices and macroeconomic uncertainty.
The firm’s co-CEOs sent a letter to investors on Thursday confirming that 15% of staff had been laid off.
- In addition to staff cuts, Compass will also implement compensation and spending reductions across the rest of the business.
- “While painful, these changes will enable Compass to stay agile and well-positioned in this evolving market, which has challenged many of our industry peers,” stated the company.
- The CEOs Thomas Heller and Paul Gosker explained that the company had overhired amid overwhelming demand for its services in 2021. As of now, the “recent market downturn” and market conditions have forced the company to redirect its spending.
- The firm has promised to provide financial and non-financial assistance to its laid-off workers as they transition to other jobs. Meanwhile, senior employee and executive pay have fallen by as much as 50% in some cases.
- Compass mining provides customers with the ability to host Bitcoin miners. It sold half a billion dollars of mining equipment to customers since January 2021.
- However, the mining industry has taken a major hit with the fall in the value of the Bitcoin it mines. Core Scientific, a major public miner, was forced to sell almost all of its Bitcoin in June alone.
Other crypto companies, including Coinbase and Crypto.com, have been forced to fire similar numbers of employees in recent weeks.