Dot-com job cuts slowed down in June, but tech infrastructure jobs led professional service and consumer categories with 8,789 jobs eliminated.
Dot-com job cuts fell for the second consecutive month in June to the lowest level since last November, decreasing 31% from the number of job cuts in May to a total of 8,789 job cuts and layoffs, according to a report this week from outplacement firm Challenger, Gray & Christmas, Inc. Despite a leveling off in the rate of jobs being eliminated, however, dot-com job cuts in June were significantly higher than in June of last year.
Internet technology firms that build and maintain web infrastructure such as servers, networking equipment and telecommunications services and equipment led all other dot-com businesses with 5,817 job cuts in June. Dot-coms offering professional services including advertising, marketing and consulting announced 1,185 cuts in June while consumer service firms announced 1,130 cuts.
“Many of the smaller, independent dot-com firms have been swallowed up by their larger competitors or have fallen into bankruptcy and eventual closure,” says Challenger CEO John Challenger. “The larger dot-coms, many of which are extensions of brick-and-mortar companies, have been able to survive due to the life support provided by the old economy division of the company.” However, the larger dot-com/old economy companies have been unable to escape the slowing economy and are increasingly turning to job cuts to contain costs, he said.