EKWB, one of the world’s best-known premium liquid cooling solutions providers, has decided to lay off a quarter of its employees from its headquarters in Slovenia. A statement shared by the company can reveal that the decision had to do with weaker demand; apparently, it is a lot harder to get enthusiasts to spend their hard-earned cash on water blocks these days.
The official statement from EKWB, as received by TechPowerUp:
“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.”
EKWB Lays Off 25% of Workforce, Blames Lower Watercooling Sales (TechPowerUp)
EK Water Blocks, possibly the most notable manufacturer of DIY PC cooling solutions, has downsized a quarter of its staff in response to a sharp drop in sales. This affects over 60 of the 200+ tech jobs in Slovenia, the home country of EKWB, something it proudly flaunts. EKWB sees its sales principally split in half between the North American and European markets. The company’s market-presence in Asia is limited at this time, although it is now a reinvigorated area of interest. The company noticed quarterly sales-drops in steps as big as 20 percent since October 2021, according to Slovenian press reports.
The company is faulting these sales drops on the COVID-19 pandemic, specifically its economic impact, spike in PC hardware prices, and people spending less on premium/novelty hardware that EKWB principally specializes in—DIY liquid cooling solutions. The company also noted the impact of the war in Ukraine causing various commodity shortages for manufacturers in Europe. Matjaž Krč (CEO, EKWB) in a statement even blamed the sociological impact of COVID-19, specifically gaps between pandemic waves that enable people to travel and enjoy the outdoors—not wanting to spend on things that keep them indoors, such as gaming.
EKWB was founded by Edvard König and has been offering effective liquid cooling solutions for enthusiasts since its inception in 1999. One of the company’s most recent products is the Vector2 water block for ASUS ROG Strix GeForce RTX 3070 Ti graphics cards, featuring a CNC-machined black-anodized backplate, 3D-machined Plexi insert, and minimalistic design.