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.