Corsair, a well-known manufacturer of gaming peripherals and PC components, announced a massive staff reduction amid declining revenue and millions in losses. A letter sent by CEO Andy Paul to employees talks about forced “organizational changes” that include job cuts.
Image source: Corsair.com
According to the financial report for the second quarter, Corsair suffered a loss of $29.6 million. The company attributes this to a decline in sales in the gaming components market, especially in the DIY PC segment, reports Overclock3D. While sales of peripherals remain stable, demand for products such as memory modules, SSD drives and other PC components has declined significantly.
The main reason for the decline in sales of Corsair components is the lack of new processors and video cards from manufacturers. Traditionally, sales of memory and other PC components increase after the release of new equipment, as users “harmoniously” update their systems. However, no new products have appeared over the past few quarters.
In his letter to employees, the CEO noted that Corsair needs to streamline its operations and costs by reducing its headcount by about 90 people over the next few weeks. “We will continue to invest in our business categories that are showing good growth and expect components and memory production to recover next year as new games and hardware enter the market,” Andy Paul said.
He also pointed to games such as Call of Duty: Black Ops 6 and Grand Theft Auto VI as potential catalysts for component and peripheral sales in the coming quarters. The executive expressed sympathy for Corsair employees affected by the layoffs, hoping that they will be able to find new stable jobs in the near future.