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In Wake Of CEO’s Departure, Digg Cuts 10 Percent Of Staff

Digg, which saw the departure of longtime CEO Jay Adelson a month ago, is now laying off 10 percent of its staff. In an e-mail sent to employees, founder Kevin Rose says the layoffs are necessary for the “long-term health” of the business.

The job cuts — Digg’s second round of layoffs in a year-and-a-half — raise questions about Adelson’s claims that he was leaving because the site was doing well. In fact, Adelson had specifically noted in a blog post announcing his departure that the company’s sales force was “growing” and the company’s hiring “ramping.”

Digg has made some very aggressive moves lately — the success of which aren’t known. The company ended its exclusive ad-sales agreement with Microsoft (NSDQ: MSFT) a year ago and, a few months later, announced a new ad platform of its own that let users vote on ads just as they do with stories. It also said this fall that an ad network

3 Responses to “In Wake Of CEO’s Departure, Digg Cuts 10 Percent Of Staff”

  1. Its a shame to see a once hot property miss the boat on its evolution. Yes, they could have sold out earlier but didnt much to their chagrin now I am sure. But what they didnt get is that they could have been a content god for someone else’s social platform or brought their brand of democratic journalism to a wide range of networks and really created something long lasting and unique! Now, Digg just appears threadbare and tired with fewer submissions and less compelling content sitting around on the main page.