The snowballing layoffs in the US dotcom sector are turning in an avalanche, with sackings in the last three months exceeding the previous 12 months, a widely quoted consulting firm said today.
Chicago-based Challenger, Gray and Christmas reported that 34,936 workers in the Internet industry were handed pink slips in the last three months, from December 2000 to February 2001.
That's a 12 percent leap over the previous 12 months, wherein 31,056 dotcommers were shown the door.
Online retailing suffered the biggest hits of late. Sackings in this sector jumped 57 percent from 1,829 in January to 2,874 in February.
"Selling online has proven to be a huge disappointment, said John Challenger, CEO of Challenger, Gray. "Companies that continue down this path are headed for some real trouble."
The consultant also sees tough times ahead for portal sites, such as Yahoo, which depend on advertising instead of sales for their revenues.
Online ad sales have been in a steady decline since December. Portals, Challenger said, announced 1,516 job cuts in February, up from 945 in January.
"The portals face the biggest threat online these days," said Challenger. "The ad dollars are leaving, and you're going to see more and more employees following."
AFP