38,538 and Counting: Web 2.0 Layoff Tracker

Tech site TechCrunch has a depressing but necessary Layoff Tracker charting the impact of the downturn on Silicon Valley, Alley, and the whole new medi shebang. By its current count, 108 companies have laid off 38,538 workers. The number seem inflated by a number of non-tech inclusions. For instance, the tally tosses in all 600 of the Time Inc. layoffs as well as the 32 from Conde Nast and Portfolio. Surely most of these losses involve the print side. We know that Portfolio is keeping a small crew to maintain the Web brand, for instance, and it is unclear how much commitment media companies will maintain in their online strategies through the expected prolonged downturn.

But the Layoff Tracker makes interesting reading. The carnage doesn’t seem to be passing over any sector. Online video see Heavy, 60Frames, and Revision3 all shaving off staff. Online advertising cuts started with a 40% clip at Adbrite, but it extends to mighty Razorfish (the biggest media buyer of all) as well. Even game companies like Electronic Arts and WildTangent pulling back even as the prospects for both retail and online casual games looks promising.

At trade show OMMA Mobile, Virgin Mobile’s Ron Faris, Director, Brand Development and Partnerships suggested that any digital business that relies on advertising as its sole revenue model should expect some dark days. One legendary search marketing pro told me his agency is scrambling to play good offense by reminding clients that a downturn is no time to decrease budgets in their most efficient media buys — online.