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
Published: 22nd April 2022 | Source: Techpowerup |
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.
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.
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