September dot-com job cuts lowest since July 2000

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Chicago--Dot-com job cuts fell to 2,986 in September, the lowest number since July 2000, when 2,194 jobs were cut, according to outplacement firm Challenger, Gray & Christmas Inc. Dot-com job cuts in September were 38% lower than in September 2000, when 4,805 jobs were slashed. The figures suggest the worst of dot-com job cutting may be over. "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 Challenger, CEO of Challenger, Gray & Christmas. There were 1,153 consumer services dot-com job cuts in September, the most of any category. Job cuts in other dot-com sectors were: portals, 790; technology, 505; retail, 361; health, 60; professional services, 50; media, 42; and entertainment, 25. In a statement, John Challenger expressed some optimism. "The Internet still offers viable business opportunities as the number of people with Internet access increases," he said. "As a result, we will continue to see job growth in this area, but it will probably never again match the explosive growth of a couple of years ago."

--Philip B. Clark

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