Web development company, Oven Digital Australia, has retrenched its workforce, blaming 'forces' within the IT sector.
The company employed 25 people in Sydney.
Managing Director, Dr Tim Parsons, would not say how many staff had been retrenched nor confirm whether the company had shut its doors.
However, retrenched staff have told ZDNet they were given their marching orders on Tuesday.
Parsons said clients of the Internet consulting and development company had been advised of 'developments'.
Much of the company's focus has been on helping start-ups build their businesses online through strategic development, interactive design, e-commerce and broadband applications.
-We are currently talking to our legal and financial advisors about moving forward", Parsons told ZDNet.
Oven, which has offices in New York, San Francisco, London, Tokyo and Paris began its Australian operation in May 1999.
Parsons said the company had experienced some -ups and downs" recently.
-The dot-com bubble and expectations are causing companies to close their offices" he said.
-In this industry you're affected by forces."
I run my own business WWWalker Web Development Pty Ltd (www.wwwalker.com.au). I have been approached by an unemployed Web developer who had been retrenched when Dimension Data bought out Com Tech in December 2000 and sacked over 20 in Sydney and more in Melbourne. Sounds like it is good to be a microbusiness. I've never had that kind of pressure though after the Olympics everything stopped for 2 months and it was very hard to kick start things again.