EK Water Blocks has laid off 25% of its staff due to declining consumer spending

EK has seen a sharp decline in sales, forcing the company to lay off staff

EK Water Blocks has laid off 25% of its staff due to declining consumer spending

EK Water Blocks cuts its workforce amid lowered demand for liquid cooling products

In a statement to TechPowerUp, EK Water Block (EKWB) has confirmed that they will be laying off approximately 25% of the company's workforce, blaming declining demand for its premium liquid cooling products.

This decline in sales comes after years of success, even during throughout the COVID-19 pandemic. EKWB saw financial growth until Q4 2021, a time that had seen EK expand its staff and its product offerings. Recent months have had an huge impact on the economies of the US and Europe, the two major global regions that EK operates in. Rising fuel costs, inflation, and other factors have hit consumer spending, and that has resulted in declining sales for EK's premium products.

Below is that an EK Water Blocks representative has said to TechPowerUp regarding its recent layoffs.   

   During the first quarter of 2022 EK, the leading computer liquid cooling solutions provider, observed signs that consumer spending was starting to decline in response to global events. Despite forecasting a reduction in demand for EU and USA during our 2021 Global Summit, the onset of conflicts in Ukraine saw sales drop below these expectations.

In response to these trends which indicated moderate willingness to spend, EK is taking early precautions to streamline our operations in Slovenia. Regretfully this involved a reduction in the number of employees by approximately 25%. Further plans were also initiated that will see EK enter new geographical markets and sales channels with more outstanding and innovative products.

Now more than ever EK is committed to delivering the quality and experience our loyal customers demand. We sincerely hope our actions will permit us to do this long into the future.  

EK Water Blocks has laid off 25% of its staff due to declining consumer spending

At this time, EK's downsizing is unlikely to be the beginning of the end for the company. EK has a strong presence within the liquid cooling market, and the company's sales are likely to increase when next-generation products launch from AMD, Intel, and Nvidia. This is especially true if next-generation high-end GPUs are has hot-running as expected.

EK is reacting to the state of global markets. An economic downturn is expected and many consumers a tightening their belts. That means that there are fewer consumers that are willing to spend money on premium liquid cooling products. While today's market situation is not good, we don't expect EK to go under anytime soon. 

To all of those who have recently lost your jobs at EK, we wish you well and hope that you all can find new employment soon.

You can join the discussion on EK Water Blocks laying off around 25% of its staff on the OC3D Forums.

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Most Recent Comments

22-04-2022, 16:56:25

Warchild
Well if they stopped charging 25% more than the blocks are worth, things could be different.Quote

22-04-2022, 18:17:34

AlienALX
Quote:
Originally Posted by Warchild View Post
Well if they stopped charging 25% more than the blocks are worth, things could be different.
Yup. They've also had the issue of stupidly expensive GPUs and people not wanting to water cool them given they wanted them for mining.

But EK has always been more expensive than most brands and there are plenty of good Chinese options now like Barrow.

I can see a lot of these luxury companies folding over the next couple of years now that we are all back to reality.Quote

22-04-2022, 19:37:42

Avet
Or you can pay the same or slightly less and get much better quality products from Watercool. They don't expose themselves with marketing like EK and Corsair because they couldn't handle massive orders. But if you know about them there is no reason to buy EK.

Barrow and Bykski are valid bang for buck options. And they have some very nice unique products.Quote

22-04-2022, 20:26:24

AlienALX
I can't vouch for Bykski. I have had three of their blocks. The TR block I had was pretty terrible (looked nice though) and the two GPU blocks I have had were pretty ill fitting and poor. They cooled well though. I've also seen a few examples where they have made blocks for cards (like really odd ball cards like the 2080Ti Lightning and Kingpin) only for people to find they didn't fit at all.

Totally agree on the marketing though. Water cooling is niche. You don't need to spend tons of cash to get people to do it, as people will always avoid it because they are scared of it or just don't want to spend the money.

Bitspower have really made inroads over the past couple of years. Their much cheaper Touchaqua range has been excellent, and they have gotten it into a lot of Microcenter stores and etc.Quote

25-04-2022, 13:04:30

Kaapstad
May have something to do with people not wanting to tear apart a brand new £2000 card to fit a waterblock.Quote
Reply
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