|Subject||Profits and losses, Shut-down condition|
|Topic||Production and costs|
|Key Words||Internet companies, salaries, stock options, NASDAQ, investors, initial public offering, businesses, downsize, layoffs|
Many people have been tempted to join Internet companies by high salaries, the promise of stock options, and fantasies of early retirement. Unfortunately for some, their dreams have been shattered.
Some Internet businesses were damaged by the April 14 tumble of the NASDAQ which signaled that investors were no longer willing to pour money into dot-coms that were not profitable. With poorer prospects of a successful and speedy initial public offering, such businesses had to redefine their plans. Some had to downsize as they focused on their core businesses; others were obliged to close.
Employees were faced with layoffs. For example, drkoop.com Inc., a healthcare web site, laid off 50 (35 percent) of its employees. Toysmart.com, a Disney-backed retailer, was forced to shut down and terminate its 170 employees. Still, many Internet companies are thriving and the laid-off employees should be able to find other jobs, particularly given their skills.
(Updated August 1, 2000)
|Source||Matt Richtel, "www.layoffs.com: Internet Work Force Has Its First Brush With Downsizing," The New York Times, June 22, 2000.|
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