‘Dot-Coms’ Lay Off 5,400 Since December

Nearly 5,400 jobs have been eliminated since December at U.S. companies that sell goods and services over the Internet, according to a survey by the Chicago-based employment company Challenger, Gray & Christmas Inc. The cuts came from 59 companies, almost a third of which have gone out of business, the survey found. The survey was unable to determine how many jobs were once available at the companies. Just this month, 1,263 jobs have been eliminated at 17 Internet businesses, according to the one-time telephone survey. John Challenger, chief executive of the employment company, said the results shouldn’t be taken as a sign the fledgling industry is in trouble. “ ‘Dot-coms’ are merely taking the next evolutionary step where the companies that do not produce are sorted out,” he said. “It seems as if this sector may have reached this stage faster than any other in recent memory.” A survey released in April by the Boston Consulting Group for Shop.org, a trade group, indicated there were more than 400 online retailers. The survey projected revenue of $61 billion for the companies this year, compared with $33.1 billion in 1999.