Digg lays off staff to remain profitable
News aggregator Digg has announced more layoffs, just months after 10% of its full workforce were let go, with the site saying the cuts had to be made to remain profitable.
Chief executive Matt Williams, who joined the site only about six weeks ago, has sent a letter to staff saying that in order for the site to keep going, changes have to be made.
“Unfortunately, to reach our goals, we have to take some difficult steps. The fact is our business has a burn rate that is too high. We must significantly cut our expenses to achieve profitability in 2011.”
“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.”
Williams told TechCrunch that due to the changes, Digg should enter profitability in mid 2011.