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Dot-com doom - it's not over yet

This month saw dot-com layoffs accelerate above the declining rates set by previous months.
Written by Kate Hanaghan, Contributor

This month saw dot-com layoffs accelerate above the declining rates set by previous months.

Just when we thought it couldn't possibly get worse, indications are that dot-com staff are suffering more than ever. In April, around 17,000 dot-com employees lost their jobs worldwide, compared with less than 10,000 in March. The data has been produced by job placement company Challenger, Gray and Christmas, and figures suggest that dot-coms might not have begun a turnaround. However, it's not just pure dot-coms that are under pressure. Indications are that online ventures by traditional companies are also feeling the squeeze. The 84 per cent increase in layoffs that occurred in April is in part related to the general misery felt across all sectors. However, accusations of bad management during the dot-com honeymoon period cannot be forgotten. Jan Erik Gustavsson is a former technology adviser to dot-com flops letsbuyit.com and boo.com. He explained that the insular viewpoint of dot-coms led them to get caught up in their own hype. He told silicon.com: "People got carried away being pushed by investors, the media and the market. In many cases, myself and others did things they didn't fully believe in and we should have put our foot down."
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