Bitcoin mining company Compass Mining is letting go of 15% of its team.
The miner is also cutting salaries and spending, according to a statement on Thursday. Pay cuts to senior employees and the executive team were up to 50%.
"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," the statement from co-founders and interim CEOs Thomas Heller and Paul Gosker said.
The company recently announced the resignation of its CEO and CFO, citing "multiple setbacks and disappointments." Around that same time, a conflict with one of its hosting providers over claims of missed payments became known to the public.
Compass said Thursday that it grew too quickly while its service is "not nearly where it needs to be." It also pointed to the recent market downturn and anticipated future market conditions.
"When we launched, we were amazed by the level of demand for our services, and as a result, we tried to address the operational, financial, and technology bottlenecks faced by all growing companies by hiring more people," the statement read.
Compass will also rein in marketing spending. "We will spend more time diligencing (sic) content providers, and partner with those with high integrity, that care about companies they accept dollars from," the statement said.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.