Red has long been the color of choice for companies venturing into the digital domain; that's red as in ink, and that choice has been by necessity.
For a while, it looked as if U.S. investors, notorious for focusing on the next quarter, were ready to play along and look for the long-term payoff. But those heady days are gone and investment horizons are shrinking again as the Nasdaq returns to earth. It might be a temporary bout of sanity or it could be the beginning of a shakeout, but the easy money has dried up, New Economy companies are struggling to make ends meet and there are some interesting new numbers to contemplate.
As a result, cyberspace has taken on a decidedly lighter hue in the last few weeks. The more subtle shade is courtesy of the growing number of pink slips that are being mixed into the froth of red ink. As of June 15, 55 dot-coms had laid off approximately 4,650 employees, and the impact is being felt across the entire spectrum of digital economy companies. J. D. Edwards software has let 800 workers go, Corel has released 320. MedicaLogic/Medscape, a health-care company, has let 110 employees go. PlanetRx, an online drugstore, has laid off 70 workers, about 15 percent of its workforce. Epidemic Marketing has laid off its 60-person staff, Emusic.com has laid off 40 employees. Even Amazon.com has let 150 people go.