Gigabyte Planning Layoffs Amid Motherboard Woes - Report

Gigabyte might pass out some pink slips in the coming months. According to a report from DigiTimes today, the company is planning to lay off some of its workforce, mostly from its motherboard business, as the segment’s dwindling sales numbers are expected to continue declining into 2019.

The report cites “market watchers,” who say Gigabyte will let go of 5 to 10 percent of its employees to reduce sales and marketing expenses in the first half of this year; however, Gigabyte declined to comment. DigiTimes claimed Gigabyte doesn’t currently plan to lay off any workers from its graphics card business. 

DigiTimes said the layoffs in the motherboard department result from the segment’s poor sales performance over the last few years. Sales for 2016 reached 16 million, then fell to 12.6 million in 2017, then fell even further to 11.45 million in 2018. 

Gigabyte isn’t the only company struggling to sell its motherboards. This is an industry-wide problem that some, like MSI CEO Charles Chiang told us, have blamed on the shortage of Intel’s desktop processors. If people can’t buy new CPUs, they probably aren’t going to buy new motherboards.

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  • jasonsrevell
    Intel chip shortage? That's a convenient excuse but I don't see that as a reason for a lack of MOBO sales. Well for one thing, you've got the hobby favorite Ryzen 5 2600 CPU. That's not an Intel chip. Most hobbyists are running low to mid range setups and there seems to be plenty of Core i3 and Core i5s around.
    I would estimate it has more to do with pc builders holding onto their MOBOs for at least 3-4 years before changing them out and not that many people building new PCs in general. Of course that doesn't apply to Toms readers. MSI in particular seems to not be able to keep up with demand for their inexpensive B450 boards, that is limiting their sales. Gigabyte has recently earned a reputation for shoddy gamer marketed boards just look at their amazon reviews mostly around 3 stars.
  • osiris11235
    This is sad. I've been very happy with my Z390 AORUS XTREME, which has several features not replicated on other brands' Z390 boards.
  • logainofhades
    Their quality has been hit and miss, as of late, which is sad.