Dot-com blood bath flows in September

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New York--Employment expert Challenger, Gray and Christmas Inc. has released a report showing 4,805 job cuts among Internet start-ups in September, a 15% increase from the 4,193 reported in August. The record number of pink slips includes 217 dot-com companies cutting staff and 37 dot-coms going out of business altogether. September's record number of job cuts brings the year-to-date total for all dot-com jobs to 16,590. The services sector trimmed its workforce by 5,054 since December, the Challenger report said. Internet retail companies have recorded the second-highest category total with 4,563 workers getting the ax since December. John A. Challenger, Challenger, Gray CEO, said in a statement that "dot-com founders at the outset made a pact with the devil" by choosing to build businesses designed to go public or be sold, rather than for long-term profits. That strategy is coming home to roost, the outplacement firm said.
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