Dot-Com Layoffs Slow, But... - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Dot-Com Layoffs Slow, But...

Cuts for 2001 already total 64,983, nearly 60% more than the grand total for last year

The good news about May's dot-com job cuts: They declined 24% from the previous month, to 13,419. But the rest of the story isn't so sanguine: Cuts for 2001 already total 64,983, nearly 60% more than the grand total for last year. Those are the findings of a recent report from outplacement firm Challenger, Gray & Christmas. Another figure that rose significantly: Shuttered dot-com companies more than doubled between April and May, from 13 to 29. November 2000 still holds the record, with 31 closings.

Internet technology companies--those that build and maintain Net infrastructure--bore the brunt of the cuts, with 5,860. The two runners up: consumer services at 3,462 and professional-services firms at 2,265. "Bricks-and-mortar companies that got out ahead of the curve and built Internet divisions are cutting back," says John Challenger, CEO of Challenger, Gray & Christmas. As a result, technology companies are feeling the pinch as more companies go under or decide against upgrades, he says.

Although the pace of cuts slowed, May wasn't exactly a gentle month. It wins the silver medal for highest number of dot-com cuts to date. "The pressure is still on," says Challenger. Declining job cuts certainly don't offer any guarantees, as recent history shows. Dot-com job cuts were down in March as well--18% less than February levels--before they surged 84% to April's record high of 17,554 cuts.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Commentary
Enterprise Guide to Edge Computing
Cathleen Gagne, Managing Editor, InformationWeek,  10/15/2019
News
Rethinking IT: Tech Investments that Drive Business Growth
Jessica Davis, Senior Editor, Enterprise Apps,  10/3/2019
Slideshows
IT Careers: 12 Job Skills in Demand for 2020
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/1/2019
Register for InformationWeek Newsletters
Video
Current Issue
Getting Started With Emerging Technologies
Looking to help your enterprise IT team ease the stress of putting new/emerging technologies such as AI, machine learning and IoT to work for their organizations? There are a few ways to get off on the right foot. In this report we share some expert advice on how to approach some of these seemingly daunting tech challenges.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll