Study: Job Cuts Drop for Dot-Coms

Share this article:
The good news is that job cuts at Internet firms fell to their lowest levels in a year. The bad news is that there simply might not be anyone left to lay off, according to a study released yesterday.


Internet firms cut nearly 50 percent fewer jobs in August than in the previous month, with layoffs totaling 4,899 compared with 8,697 in July, according to a report by Challenger, Gray & Christmas. In August 2000, dot-coms slashed 4,193 jobs.


But the study said the decline may result not from an economic turnaround but from continued contraction within the sector.


Challenger said the number of company closings more than doubled during August, with 21 firms permanently shutting operations, compared with nine in July.


"The decline in job cuts may not necessarily be an indication of an imminent turnaround. It is more likely that dot-com firms are running out of employees to cut," said John Challenger, chief executive of Challenger, Gray & Christmas.


Since January, dot-coms have announced 87,795 job cuts, more than double the 41,515 last year. According to Challenger, all U.S. companies combined have announced nearly 1 million layoffs from January and July.


So far this year, 248 dot-coms have closed.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

How Amazon Ads Might Change the Game

How Amazon Ads Might Change the Game

Will the Great Recommender introduce "pretargeting" to the menu? Is it destined to become the King of Conversion? Or will its ad business simply settle in between Google's and Facebook's?

Less Than Half of Marketers Say the C-Suite "Gets" Digital

Less Than Half of Marketers Say the C-Suite ...

The long road to digital marketing leadership starts with organizational alignment, a study finds.

Candidates Hook Into Twitter

Candidates Hook Into Twitter

A digital agency for politicians puts the power of presidential electioneering into the hands of Congressional campaigns.