UK braced for dotcom job losses

A surge of dotcom layoffs in the UK has been forecast, after a record 17,554 internet jobs were cut in the US last month. The online financial services sector was hit the hardest.

A surge of dotcom layoffs in the UK has been forecast, after a record 17,554 internet jobs were cut in the US last month. The online financial services sector was hit the hardest.

The number of US job cuts in the internet arena during April increased 80 per cent over the previous month, according to an analysis of web-related layoffs by outplacement company Challenger, Gray & Christmas. The Chicago-based firm specialises in finding jobs for those who are made redundant.

Although dotcoms shed the most jobs overall, the study also highlighted a sharp rise in the number of layoffs within the internet divisions of traditional companies. Recruitment experts in the UK warn that this trend is set to follow in Europe.

According to figures published on FT.com, 147 UK-based dotcoms closed in the first quarter of 2001, compared with 222 last year.

Adam Gunnell, founder of dotcom recruiter Boldly-Go.com, said recruitment freezes would lead to a flurry of dotcom layoffs in three to four months' time.

"In the online financial markets I don't know of anyone who's recruiting, not even on a speculative basis. The only areas that are continuing to grow are online gaming and e-government," he said.

"IT managers shouldn't expect much in terms of their remit. We won't see as much new investment and development in IT as we have. The focus will be on getting return on existing investments," he added.

Also published in Computing