EKWB (EK Water Blocks) has just communicated some not-so-great news. The company has laid off a quarter of its staff due to the sharp decline in sales of its products. This concerns more than 60 technological jobs in Slovenia, the country of origin of EK Water Blocks. The company seems to have been hit hard by the effects of Covid on the economy of the PC industry. EK is targeting the DIY market, the enlightened hobbyist building (or having built) his machine. The shortage of key components such as graphics cards has, as a knock-on effect, strongly affected companies in this segment. To make matters worse, while a certain relaxation was perceived, the beginning of 2022 and the geopolitical tensions have put a blow on consumer spending. A situation that we mentioned a short time ago concerning the demand for graphics cards.
The company has decided to cut its workforce in order to pass this bad moment. EKWB has officially communicated these decisions.
The official statement from EKWB
During the first quarter of 2022, EK, the leading provider of liquid PC cooling solutions, saw signs that consumer spending was beginning to slow in response to global events. Although it predicted reduced demand in the EU and the U.S.. At our 2021 Global Summit, the onset of conflict in the Ukraine caused sales to fall short of these expectations. In response to these trends, which indicated a moderate willingness to spend, EK took early steps to streamline our operations in Slovenia. Unfortunately, this meant reducing the number of employees by about 25%. Other plans were also launched that will allow EK to enter new geographic markets and sales channels with more unique and innovative products. Now more than ever, EK is committed to providing the quality and expertise that our loyal customers demand. We sincerely hope that our actions will allow us to do so for a long time to come.
