Benefits May 30, 2002

Dot.Com Doors Still Spinning

May 30, 2002 (PLANSPONSOR.com) - The doors at Dot.com companies were spinning at top speed in May as the number of layoffs tripled, new statistics show.
Reported by

According to the latest jobless survey from outplacement firm Challenger, Gray & Christmas, 2,078 techies ended up on the street in May – up 152% from April’s 824.

Internet firms continue to experience the heaviest downsizing, the Challenger, Gray report said. These dot.coms announced 1,517 job cuts in May, nearly three quarters of the monthly total. 

The May figure was the highest since 2,403 dot.com job cuts were announced in December. 

Silver Lining

Even with the increase, dot.com job cuts remain well below the 2001 level.  May 2002 was 85% lower than the 13,419 job cuts announced in the same month last year. 

Dot.com job cuts in 2001 were particularly heavy during the first five months of the year, totaling 64,983.  By comparison, only 6,923 job cuts have been announced by dot.coms through the first five months of 2002, down 89% from the 2001 level.

Since the Challenger firm started tracking dot.com job cuts in December 1999, announced cuts have reached 149,363. 

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