Downsizing in the Internet industry: the Hong Kong experience

Since June 2000, dot.com companies in Hong Kong have followed the same pattern of downsizing as their counterparts in the West. Explores the downsizing phenomenon in the Internet industry, the employees’ views on the experience of downsizing in the industry, their job orientation and work expectations. Questionnaires were distributed with the endorsement of an employees’ association to its members. Three sets of interviews were conducted to obtain background information on the labour department, the Internet industry and association, and the respondents’ views. The major findings include that the employees of this industry have high educational levels, are young in age and worked long hours. Those who have experienced downsizing and closure tend to feel the injustice of the practice regardless of the compensation provided. For job orientation and work expectations, the majority of respondents tend to feel that the industry offers good prospects and promotion opportunities, but, on the other hand, they tend not to be satisfied with their present working environment. Female respondents tend to look for intrinsic rewards and they are more likely to be the target for downsizing.