PC hardware makers begin laying off staff due to inflation and an uncertain economic outlook

With the recent increase in inflation and the ongoing impact of the COVID-19 epidemic, the debate that the global economy may fall into a recession has intensified, and many PC hardware manufacturers have begun to bear enormous pressure. Individual manufacturers have been greatly affected in terms of revenue. For example, Corsair has reported that the entire business line will lose $10 million to $11 million in the second quarter of 2022.

According to Anshel Sag, principal analyst at market analysis firm Moor Insights and Strategy, the trend of layoffs are gradually spreading across the tech industry. Whether it is Google or Meta, data shows that nearly 200 companies in the industry laid off 32,000 employees in July. PC hardware makers have also been quietly making layoffs, with NZXT rumored to have done so since last week, and ASUS joining the ranks this week.

At that time, many people thought that EK might be more caused by its own reasons, such as high product pricing or lack of competitiveness, but from the perspective of the overall market trend, perhaps quite a few PC hardware manufacturers are unavoidable to encounter similar problems. It was previously reported that in the rest of 2022, major motherboard manufacturers have also begun to lower their industry forecasts, with sales expected to fall by between 20% and 30%. In addition to lowering sales expectations and finding ways to address higher inventories, tough times may come soon.