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Dot.com layoffs up again
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December 27, 2000: 11:56 a.m. ET
Tracking firm says Web site pink slips climb 600% in last half of 2000
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NEW YORK (CNNfn) - December marked the seventh consecutive month in which job cuts at Internet companies increased over the previous month, setting a record in the process, an outplacement tracking firm said Wednesday.
Internet firms announced 10,459 job cuts in December, a 19 per cent increase over November's prior record total of 8,789 cuts. But that increase was small compared to the 55 per cent jump in job cuts between October and November.
A report released by international outplacement firm Challenger, Gray & Christmas revealed a stark comparison between the first six months of 2000 and the last six months. From January through June, dot.com job cut announcements totaled 5,097. But between July and December, 36,177 cuts were announced, a 600 percent jump.
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"With the economy slowing, not to mention a general wariness among investors over the prospects of dot.coms, it is unlikely that we will see a return anytime soon to the high-flying days when it seemed that a new dot.com was going public every other hour," observed John Challenger, CEO of Challenger Gray & Christmas.
Since Challenger began tracking dot.com layoffs in December 1999, the firm has recorded 41,515 cuts from 496 companies. The report shows 91 companies, or 18 per cent, have gone out of business.
Most of the job cuts have come from dot.com firms specializing in services, such as consulting, financial and information. Internet retail firms were the second largest job cutters with 9,523. 
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