Digg Reduces Staff 10% and Hires New Sales Team

Digg will be reducing its staff by 10% and hiring a new sales team for 2009. "As weve often stated over the past couple of months, given the current economic climate, weve made the decision to take a more conservative approach to our expansion plans and aggressively focus on reaching profitability within the year." they wrote in the Digg blog. "This means well be taking proactive measures to manage our costs including a headcount reduction in certain areas that are less core to this years objectives while continuing to hire for roles that will help build on our leadership position and get us to profitability faster. This includes hiring a direct sales team, in addition to other targeted hires in 2009." it went on to state.

It's a difficult time for all companies that rely on Advertising dollars to pay the bills and Digg is certainly no exception to this. As business continue to cut back on advertising dollars companies that rely on advertising to generate revenue will have to scale back as well. Digg isn't going away anytime soon however. Digg has multiple year worth of cash on hand for operations based on their current rate of expenses. The company has raised new capital and doubled in size in 2008 which certainly will help the struggling company.

"I'm confident that with commitment and focus on these priorities, Digg will be an even stronger company in 2009 and will continue to create innovative features for our more than 35 million community members. I want to thank you all for your continued support and commitment - helping us achieve our vision of the democratization of media, and revolutionizing the way people consume and discover information online." the Digg blog ended with.