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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Once hot Digg slashes staff by over one-third AFP - Tuesday, October 26 Send IM Story Print Once hot Digg slashes staff by over one-third Slideshow: Full Photo Coverage: Internet Portals & Search Engines WASHINGTON (AFP) - – Digg, the news-sharing site once one of the hottest destinations on the Web, announced Monday it was cutting over one-third of its staff in a bid to try to be profitable next year. Matt Williams, who took over as chief executive of Digg.com six weeks ago, said the San Francisco-based start-up was slashing its staff from 67 employees to 42. "The fact is our business has a burn rate that is too high," Williams said in a memo to staff posted on the Digg website. "We must significantly cut our expenses to achieve profitability in 2011." Digg users, known as "Diggers," submit stories to the site and items are ranked by popularity or interest. Many leading news websites provide a link asking readers whether they want to "Digg" a story. Williams said his top priority since becoming CEO of Digg, which was founded by Web entrepreneur Kevin Rose in 2004, was taking a "hard look at the entire business, across product, sales, and operations." "Many things are working well," he said. "Our Diggable ads product has seen a notable increase in use by advertisers and clicks by users." "Unfortunately, to reach our goals, we have to take some difficult steps," Williams said, adding that the move to reduce staff has been "an incredibly tough decision." "I wish it weren't necessary," he said. "However, I know it's the right choice for Digg's future success as a business." Williams took over the reins at Digg after a revamp of the website in August met with a poor reception from members of the Digg community. In a blog post earlier this month, the new CEO apologized for upsetting Digg users and rolled back a number of the more unpopular changes. According to Williams, Digg had 23 million unique visitors in September. The cutbacks announced on Monday come two years after Digg announced major expansion plans that were to have seen the company increase its staff to more than 150 employees. Recommend Send IM Story Print Related Articles Africa's tech explosion promises economic growth AFP - 1 hour 43 minutes ago US defends Iraq record after WikiLeaks furor AFP - Tuesday, October 26 Once hot Digg slashes staff by over one-third AFP - Tuesday, October 26 Amazon says e-book sales of best-sellers double print AFP - Tuesday, October 26 US newspaper circulation drops five percent AFP - Tuesday, October 26 News Search Top Stories Venezuela seizes local unit of US company Wozniacki top seed for WTA Championships Giant snakes, fish among spectacular species found in Amazon BP may close gas field over Iran sanctions: report Haiti cholera deaths slow but fear builds More Top Stories » Related Full Coverage Internet Portals & Search EnginesLatest development in the online world All Full Coverage » ADVERTISEMENT Most Popular Most Viewed Most Recommended It's a boy, and another boy for pop star Celine Dion Moon's 'treasure chest' includes silver Japanese joins the ranks of sequenced genomes Alonso wins in Korea, takes F1 championship lead EU close to embracing Serbia More Most Viewed » Time, like all good things, may come to an end: study Too much TV psychologically harms kids: study Iranian chocolate thief 'to have hand chopped off' Ancient galaxy is more than 13 billion light years away Moon's 'treasure chest' includes silver More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo! Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Entertainment Photos Yahoo! News Network Copyright © 2010 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

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