EKWB will lay off a quarter of its staff over the next few weeks. It concerns about 60 employees operating in Slovenia, the home country of the water cooling manufacturer. The company is said to have made this decision because of weak sales: Quarterly sales have fallen by a fifth since October 2021, according to a Slovenian newspaper.
This decline is mainly due to the economic impact of the pandemic and the war in Ukraine. Due to higher hardware prices, there would be less demand for additional components, as well as less demand for luxury products such as water cooling. Matjaž Krč, CEO of EK, also refers to the sociological impact of Covid-19, which is causing people to want to stay at home less and therefore play less.
In 2023, the European Championship will celebrate its twentieth anniversary.
TechPowerUp states that EKWB has experienced strong financial growth over the past five years. The company expanded its workforce to 64 employees through 2021; this roughly equates to the number of staff currently being laid off.
In a statement to TPU, EK reported that this measure was taken to ensure the future of the company. Staff reduction would be implemented almost proportionally across all departments, with a focus on future growth. For example, plans were launched to enter new geographic markets and sales channels with ‘more excellent and innovative products’.
Source: TechPowerUp
Source: Hardware Info
