So, I feel less than fantastic about the people let go.
At the same time, it's been years since overclocking really benefitted from simply slapping a water block onto the components for most consumers. Let's be real here, the 2xxx series (sandy bridge) was the last time that Intel really made an absolute banger (for the purposes of overclocking). Every subsequent generation has either required that you fix their garbage paste, or otherwise jump through hoops.
Despite this, they've managed to sell insane amounts of stuff...with what appears to be significant profit margins based upon the manufacturing costs and continuing push for lower quality controls and process controls. Read: the coating issues and general push for more cost generationally. This seems more driven by high end GPUs...but when a GPU costs as much as two consoles it's hard to see "normal" gamers shelling out that money...let alone another 25-50% on a custom water cooling loop.
As someone who still has a couple of their components, I'm really disappointed with their more recent offerings...and they state that a 25% loss in personnel is somehow a pivot rather than a deeply concerning lack of manpower. It's funny...most companies are stating that they cannot get labor. EK is stating that 25% of their company isn't necessary...and then turning around and reinforcing their commitment to innovation, which is a costly thing. It's high risk, but high rewards. It kinda seems like a shrinking viable market, competing with the idiot resistant AIOs being sold, and a general requirement to compete with much lower cost air cooling is making the marginal benefits of custom water cooling not viable.
I say this, while running a 3930k that most definitely benefitted from being run under water, and constructed a decade ago with EK fittings. That said, the last time I reached out for water cooling was 8 years ago with the initial terrifyingly bad Intel thermal paste between the IHS and chip design. I've got nothing since Ryzen 1 that really saw the need for water cooling...but also haven't touched thread ripper or the high end Intel stuff. That said, when a decade of progress makes a $600 processor get comparable core counts to a $230 one (3930k versus 5600x) it's hard to see why I'd spend all that money on custom water instead of plowing it into a better set of components. Hate to say this, but when computers last 3-5 years it's really difficult to invest hundreds into any component.
I guess EK is gambling on progress slowing down over time. If that was your gamble, it makes perfect sense to diversify now, and make products that are cheaper. Shed your skilled labor force, claim it's the Coof, and come back with a competitive product in a lower bracket where anything goofy you've done is overlooked. Then, over years, degrade the product to be 110% of the performance of cheaper stuff at 130% the price because of name recognition. I believe in the business we call this the Dutch gamble. Let me explain, in about 2010 Dutch investors bought up the primary cookie manufacturer which competed with Pillsbury in the US. They immediately cut costs by compromising their premium brands with bad input materials, but retained the premium price tag. Their gamble was consumers would still think the brand premium...so profit margins would go up. This worked for a time, until they actually made cookies that were at Pillsbury quality levels, at which point their perception became even worse than Pillsbury because of the huge up-charge. They then had to under-cost Pillsbury to remain afloat, making overall profit margins tank. Pillsbury managed to ignore all changes, become viewed as a premium brand, and get a bunch of new customers because the Dutch investors gambled that increased profit margins would trump Pillsbury, and they would never have to compete with them as a "premium" brand...despite their removal of all premium qualities. It almost sounds like EK is lining this up...but what do I know?
