Compass Mining announced earlier today that it would lay off 15% of its staff and cut compensation for top management by 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. Of all the decisions we have had to make as new CEOs, this will be far the hardest."
said interim CEOs Thomas HellerPaul Goskerblog post
The company believes the proposed changes will help them "stay agilewell-positioned" in a challenging and "evolving market.
Compass Mining has found itself in a tough spot in the past few weeks. Earlier this month, the firm had to give up one of its mining centres in Marine, US, after allegedly failing to pay the electricity bills to Dynamics Mining, the facility's owner.
This led to a public exchange of words over Twitter, with the two companies hurling allegations at each other. As a result, some top executives from Compass, including the CEO and CFO, resigned. Interim CEOs were appointed to replace them.
"Given recent market downturn and anticipated future market conditions, we had to take a hard look at our spend and recalibrate for the future of the business"
said the company over its decision to reduce staff
Outgoing employees will be provided financial and non-financial assistance to help them transition through the difficult phase.
Compass Mining was founded in January 2021 and has since sold over half a billion worth of mining equipment in addition to deploying more than 30,000 machines for miners.
Moving forward, the company intends to re-evaluate its strategy in choosing partners. It will be more diligent in selecting partners with higher integrity who genuinely care about their business.
