Dot-gone slowdown?

Computerworld - The dark cloud hovering over Internet businesses may clear yet, according to a report released today from an outplacement firm.

New York-based Challenger, Gray & Christmas Inc., which has followed the dot-com fallout for more than a year, said this month's layoff numbers hold some hope for those waiting for a tech industry turnaround. Although companies announced plans to cut 8,697 jobs in July (four times as many cuts as were announced in July last year), that was still the lowest monthly number of layoffs since October, when there were 5,677.

By comparison, there were 9,216 layoffs announced in last month (see story).

The largest number of layoffs came from Internet companies that provide consumer services, such as the now-defunct Webvan Group Inc. (see story). Layoffs in consumer services accounted for 3,843 of the job cuts announced so far in July. June also marked the first time since February that technology firms didn't lay off the most workers.

The layoffs were also spread among fewer companies, which isn't surprising since so many other companies have already gone out of business, according to John A. Challenger, CEO of Challenger, Gray & Christmas.

While the month isn't over yet, Challenger said his firm tallies layoffs until the 27th or 28th of each month, then adds any later layoffs to the next month's numbers. Therefore some of this month's layoffs actually occurred last month.

• Hiring the dot-gone, July 16, 2001



• Employers say job hunters need soft skills, training, June 4, 2001



• Dot-com bust a mixed bag for IT staffing, May 7, 2001

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