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Summary:

Social bookmarking site Digg is cutting 10 percent of its 75 person staff. CEO Jay Adelson addressed the “headcount reduction” in a blog po…

image Social bookmarking site Digg is cutting 10 percent of its 75 person staff. CEO Jay Adelson addressed the “headcount reduction” in a blog post; WebWare’s Rafe Needleman confirmed the percentage. Adelson said the layoffs were needed to help Digg achieve profitability this year. But he also said the company would soon add a direct sales team and other “targeted hires.”

Digg’s long-standing display and contextual ad deal with Microsoft (NSDQ: MSFT) is still in play, but the company raised a $29 million third round in September partly to fund the development of its own ad products. Founded in 2004, Digg’s rabid user base has made it consistently the subject of acquisition rumors, but Hitwise recently reported that microblogging service Twitter had overtaken Digg in terms of traffic.

  1. I wonder how much money they made since 2004. They are one of the most popular sites and still need capital.

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  2. shitty company, failed business model, gimmicky at best

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  3. I imagine a bunch of kids playing foosball saying "damn…..ain't we hip." Until they fire all their asses.

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  4. It's a tough to time for startups and big companies.

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  5. Twitter is more user friendly and has a much wider audience than Digg ever will. You can promote Digg on Twitter but it is harder to do it the other way around.

    Lot's of brows raised on exactly what the heck Digg is doing with themselves. They may have some top advertisers and what happens if those go away?

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