There is no need for unnecessary panic in the wake of job cuts in the Internet business, according to an Irish Web recruitment company. NewMediaCV Managing Director Dermot Rogers said last week that there were more job vacancies in the e-business sector at the moment than there are candidates to fill. In the last number of weeks, the Irish ebusiness industry was hit by a series of job cuts and lay-offs notably Eircom's Ebeon and Internet consultancy firm Nua. Computer maker Gateway also laid off staff at its Dublin plant due to slowing global computer sales.
"Certain companies may have run out of money but we are aware of many others that are still thriving", Rogers said. "Even though some e-business companies have slowed down their hiring activity, there has still been a growth of between 10 per cent and 20 per cent in the salary levels on offer over the past six months across a range of positions", Rogers added.
Survey Shock: Dublin has been ranked last in a list of seven European cities best-equipped for e-business, it was reported last week. A PriceWaterhouseCoopers survey - which examined cities already considered favourable for ebusiness activity - suggested the Danish capital Copenhagen was the best place in Northern Europe to locate a centre for such activity. The survey said Dublin faired badly in terms of infrastructure, work permit problems and inferior foreign language skills. Last month the Taoiseach said Ireland had the potential to become Europe's e-commerce hub.
Closed Book: Workers laid off by Amazon.com are being urged by unions not to sign a fifteen-page severance agreement which prohibits them from making derogatory comments about the Web company. Amazon announced last Tuesday it was to lay off 1,300 workers, or 15 per cent of its workforce. For the three months to the end of December, Amazon lost $545 million compared with $323.3 million for the same period last year. The company told the laid-off 1,300 employees that those who signed the "non-disparagement" agreement would - among other benefits - receive an extra six weeks' pay.
Cutting Edge: The global wave of Internet job losses continued unabated last week. Joining Amazon, the Walt Disney Company decided to consolidate its online operation resulting in the laying off of 400 people. HewlettPackard is cutting 2 per cent of its workforce as part of the computer and printer giant's ongoing reorganisation plan. Meanwhile Hispanic-focused, San Francisco-based website Latino.com has fired most of its staff and game site Barrysworld will formally cease operations today because of a lack of investment.
Not Aol That: AOL Time Warner last week reported a $1 billion loss for its first quarter as a combined company due to charges associated with last month's $105 billion mega-merger. Announcing the loss, senior executives insisted that cost-cutting measures announced last week will be sufficient for the company to meet ambitious 2001 earnings forecasts. AOL Time Warner said last week that it will shed 2,400 jobs and seek cuts in operating expenses.
Sony Sony: Electronics giant Sony has sought permission from Japan's financial authorities to set up an online bank in June. The Internet bank, to be called Sony Bank Corp, will be 80 per cent owned by Sony. Sakura Bank Ltd. Will own 16 per cent, and JP Morgan Chase & Co. will have a 4 per cent stake. Sony and its partners are to pump $322 million into the venture. The bank will cater for individuals - not businesses - but only residents of Japan will be able to open accounts.
Game Over: Sega is to stop making its Dreamcast home video-game machine at the end of March after failing to compete against rivals Sony and Nintendo. Sega is to begin making games for Sony's PlayStation2 and Nintendo's Game Boy Advance. Sega must now off-load of its worldwide Dreamcast inventory of 2 million machines and is to slash the price of the consoles by about one third.
In Brief... Eircom has become exclusive site sponsor of AltaVista Ireland. . . Esat Fusion says it has now captured 10 per cent of the home telephone market in Ireland. . . Online music swapping site Napster is to begin charging subscription fees in June. . .