Dot-com job losses continue but at a slower pace, says new report
Dot-com job cuts fell to 2,986 in September, the lowest level since July 2000, the month that marked the beginning of the dot-com job-cutting spree, reports New York-based outplacement firm Challenger, Gray & Christmas Inc. Retail operations accounted for 361 of the job cuts in September.
Challenger reports that dot-com companies have cut 125,000 jobs in 15 months.
The cuts in September decreased 39% from the 4,899 in August and were lower by 38% compared to September 2000, when 4,805 dot-com cuts were announced, Challenger, Gray & Christmas Inc. reported today.
September`s 2,986 figure brings the 2001 total to 90,781, more than double the total from 2000 of 41,515.
Dot-coms offering consumer services experienced the most job cuts in September with 1,153, or 39% of all cuts during the month. Portals ranked second with 790 announced cuts.
"The dot-com sector may be stabilizing, which would account for the decline in job-cut announcements. Many of the weakest firms no longer exist and those once considered the titans of the Internet are trimming payroll and other costs to the bare minimum," said John A. Challenger, chief executive officer of
Challenger, Gray & Christmas. "The Internet still offers viable business opportunities as the number of people with Internet access increases. As a result, we will continue to see job growth in this area but it probably will never again match the explosive growth of a couple years ago.”
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