EK WB Water Chillers: Demand Falls, One in Four Employees Laid Off

Image: EK Water Blocks

EK Water Blocks has laid off 25 percent of its workforce in Slovenia. The reason given by the company was declining sales figures, DIY water cooling demand had dropped significantly and ultimately more than expected.

The times of great growth are over for EK Water Blocks for the time being. In 2020 and 2021, the company grew a good 30 percent per year and, consequently, increased its workforce by more than 60 people, explained a spokesman consulted by TechPowerUp!. However, since October 2021, sales figures have fallen by as much as 20 percent per quarter. In response, more than 60 jobs have now been cut. All apartments were reduced by the same proportion, EK Water Blocks said. Based on LinkedIn profiles of former employees, TechPowerUp reports that the research and development department was hit the hardest, at least in absolute numbers.

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 between waves of viruses. The money would be invested in this area, for example to travel, and not for things that occupy the four walls of oneself. “People don’t want to be at home anymore.said CEO Matjaž Krč. Demand suffered another drop due to the war in Ukraine.

EK Water Blocks does not go into detail here. Both tighter supply chains and rising cost of living will play a role here: narrowing the scope to buy products from the luxury segment, to the DIY water cooler like the EK-Quantum Vector for the RX’s AMD Navi GPUs. -6800 – Count series. At the same time, another development is noticeable: the market segment is no longer populated only by small specialized companies, but increasingly by larger “full range providers” such as Corsair, Thermaltake and Cooler Master.

New markets as a solution

EK Water Blocks does not see any acute danger. In response, new markets and sales channels will open up. In recent months, EK Water Blocks has also gradually expanded its portfolio and launched full-fledged water cooling, such as the Nucleus series AiO cooling.

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