EK WB water coolers: demand falls, one in four employees is laid off

EK WB water coolers: demand falls, one in four employees is laid off
Construction: EK water blocks

EK Water Blocks has laid off 25% of its workforce in Slovenia. The reason given by the company was the decline in sales figures, the demand for do-it-yourself water cooling had decreased significantly and ultimately more than expected.

The times of great growth are over for the moment for EK Water Blocks. In 2020 and 2021, the company grew a good 30 percent annually and as a result increased its workforce by over 60 people, a spokesperson explained when asked by Technological upgrade!. Since October 2021, however, sales figures have fallen by up to 20% per quarter. In response, more than 60 jobs were cut. All departments have been reduced in the same proportion, EK Water Blocks said. According to LinkedIn profiles of former employees, TechPowerUp reports that the R&D department was the hardest hit, at least in absolute terms.

Crises are the reason for the crisis

EK Water Blocks blames the current crisis situation for the sharp drop in demand. First, the COVID-19 pandemic would have caused people to spend their free time outdoors amidst waves of viruses. The money would be invested in this area, for example for travel, and not for things that occupy their own four walls. “People don’t want to stay at home anymoresaid CEO Matjaž Krč. Demand suffered another slump due to the war in Ukraine.

EK Water Blocks doesn’t go into detail here. Both further strained supply chains and rising cost of living will play a role here – they reduce the ability to purchase goods from the luxury segment, to DIY water coolers like the EK-Quantum Vector for RX-6800 AMD Navi GPU – counting series. At the same time, another development is noticeable: the market segment is no longer populated only by small specialized companies, but increasingly by large “full range suppliers” such as Corsair, Thermaltake and Cooler Master.

New markets as a solution

EK Water Blocks does not see any acute danger. As a reaction, new markets and sales channels will be opened. In recent months, EK Water Blocks has also gradually expanded its portfolio and launched full water cooling such as the Nucleus series AiO cooling.

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