Bitcoin mining equipment and services provider Compass Mining has announced that it is laying off 15% of its employees and cutting costs.

Changes in Compass Mining: A Message from the Co-CEOs @thomasheller_ and @TerminalPassword https://t.co/gag55POurJ

— Compass Mining 🧭 (@compass_mining) July 7, 2022

According to the statement, senior employees and the management team have agreed to a 50% pay cut.

“While these changes are painful, they will allow Compass to remain flexible and well-positioned in this emerging market that is challenging many of our industry peers,” said interim CEOs Thomas Heller and Paul Gosker.

In late June, the firm announced that CEO Whitt Gibbs and CFO Jodie Fisher were stepping down due to “many setbacks and disappointments”.

Compass is also in the process of resolving a dispute with hosting provider Dynamics Mining, which has terminated its hosting contract with the company. According to the firm, this is about 1% of the contracted capacity. Compass manages over 30,000 client miners.

Announcing the changes, Heller and Gosker said the company has grown very quickly, but that its service is “far from where it needs to be.” They also drew attention to the “decrease in the end market and expected conditions”.

“We were amazed at the level of demand for our services at launch and as a result, we sought to eliminate the operational, financial and technological bottlenecks faced by all growing companies by hiring more people,” the statement said.

Among other measures, Compass will reduce marketing costs:

“We will pay more attention to real content providers and partner with those who care about the companies they make dollars for. The most important factor in our progress is to provide our customers with exceptional services and benefits.”

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

Read ForkLog bitcoin news in our Telegram – cryptocurrency news, courses and analysis.