Troubled news aggregator Digg will let 37pc of its staff go in a bid to refocus its offerings.
The company has reported revenue of $15m and, today, is running a loss.
Therecently appointed CEO Matt Williams posted an open letter to his staff in regards to the layoffs, detailing why he has resorted to this measure.
While he noted that many things were working well for them, such as the fast response to community feedback, the implementation of feature releases and an increase in Diggable ads, he said that the company burn rate was “too high.”
“We must significantly cut our expenses to achieve profitability in 2011,” said Williams.
“We’ve considered all of the possible options for reduction, from salaries to fixed costs.
“The result is that, in addition to lowering many of our operational costs, I’ve made the decision to downsize our staff from 67 to 42 people,” he said.
While Williams said he wished this move “wasn’t necessary,” he feels it is “the right choice for Digg’s future success as a business.”
The site has been losing readership after it launched a new version of the site. The backlash resulted in many of its users abandoning the site for its rival Reddit.
