Compass Mining announced today that it will cut its workforce by 15% and cut executive compensation by up to 50%.
“Today we made the difficult decision to reduce the size of the Compass team by 15% and implement significant compensation and expense reductions across the rest of the business,” wrote Compass co-founders and interim CEO Thomas Heller and Paul Gosker.
The pair said the changes will allow the hardware mining company to “remain nimble” and well positioned in what they call an “evolving market”.
“Given the recent market downturn and anticipated future market conditions, we had to carefully consider 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 just impact our departing team members,” the interim CEOs wrote. “Our senior employees and management team have taken significant pay cuts of up to 50% as part of this process.”
The company cited rapid growth and the resulting 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 refocus the business,” the post explained. “We have publicly addressed an issue with a service provider to improve transparency and end unfounded rumors about the health of our business.”
The “service provider” is likely Dynamics Mining, which took to Twitter last month to criticize Compass for not paying the electric bill at its Maine facility, which Dynamics says was a factor. termination of their contract. Compass denied the allegations.
In June, Compass also announced the resignation of CEO and co-founder Whitney “Whit” Gibbs and chief financial officer Jodie Fisher.
Heller and Gosker said they are committed to implementing the changes quickly and decisively, apologizing and thanking outgoing Compass employees for their dedication and commitment.
“Of all the decisions we have had to make as new CEOs, this will be by far the most difficult, and we take full responsibility for all the changes that have been and will be made under our leadership,” they wrote. .
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