More Dot-Commers Get Pink Slips
The dot-com industry shakedown continues as companies merge, fold and retrench. A new report says the number of layoffs by Internet companies is picking up again.
After two months of declines, the number of dot-com job cuts rose 84 percent in April to a record 17,000.
Challenger, Gray and Christmas, an outplacement firm, says the April number beat the previous record set in January. In the first four months of the year, Challenger says more than 51,000 Internet layoffs were recorded.
One year ago, the then-soaring dot-com industry cut only 327 jobs.
Companies - both large and small - are reeling from the downturn. Advertising has fallen precipitously, stocks have tumbled and firms are looking for ways to become profitable. For many internet related businesses, voluntary buyouts aren't enough and layoffs become necessary.
The New York Times Co. said Thursday that it is cutting 47 more jobs in its Internet division. This is the second round of layoffs; 69 jobs were cut in January.
Wednesday EarthLink announced that it had eliminated 900 jobs - twelve percent of its work force. The move is, in part, a result of the company's merger last year with OneMain.com.
And Usinternetworking said it would lay off 20 to 25 percent of its staff. Between 250 and 300 workers were let go as part of a reorganization to help break even in the third quarter. This was in addition to about 150 job cuts back in January.
Other firms that have recently announced layoffs include Broadvision, Disney and Charles Schwab.
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