Compass Mining announced today that it would reduce staff by 15% and reduce compensation for executives by up to 50%.
"Today, we have made the difficult decision to reduce the size of the Compass team by 15% and to implement significant compensation and spend reductions across the rest of the business," wrote Compass co-founders and interim CEOs Thomas Heller and Paul Gosker.
The pair said the changes will enable the hardware mining company to "stay agile" and well-positioned in what they call an "evolving market."
— Compass Mining 🧭 (@compass_mining) July 7, 2022
"Given recent market downturn and anticipated future market conditions, we had to take a hard look at our [spending] and recalibrate for the future of the business," they wrote.
According to the post, Compass will provide “financial and non-financial assistance” to those affected by the downsizing.
"The changes we need to make don't only impact our departing team members," the interim CEOs wrote. "Our senior employees and executive team have taken significant pay cuts of up to 50% as part of this process."
The company cited rapid growth and the ensuing operational, financial, and technological bottlenecks as the source of the issues that led to today's announcement.
"We made significant leadership changes last week to reorient the company," the post explained. "We publicly addressed an issue with a service provider to improve transparency and stop unfounded rumors about the health of our business."
The “service provider” is likely Dynamics Mining, which took to Twitter last month to blast Compass for failing to pay the power bill at its Maine facility, which Dynamics said was a factor in terminating their contract. Compass denied the allegations.
In June, Compass also announced the resignation of Chief Executive Officer and co-founder Whitney "Whit" Gibbs and Chief Finance Officer Jodie Fisher.
Heller and Gosker said they are committed to implementing the changes swiftly and decisively, going on to apologize to and thank Compass' departing employees for their dedication and commitment.
"Of all the decisions we have had to make as new CEOs, this will be far the hardest, and we take full responsibility for all of the changes that have been, and will be made, under our leadership," they wrote.