Digg Lays Off 37% Of Staff - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Government // Enterprise Architecture
News
10/26/2010
10:44 AM
Connect Directly
Twitter
LinkedIn
RSS
E-Mail
50%
50%

Digg Lays Off 37% Of Staff

Two top execs resign in the social media company's latest restructuring, organized by new CEO Matt Williams to shore up the bottom line.

Only five months after it let 10% of its workforce go, social media news website Digg on Monday laid off 37% of its staff and lost two top executives.

Chief revenue officer and publisher Chas Edwards resigned in the morning. Later that afternoon, CFO and human resources executive John Moffett disclosed he was leaving Digg. Moffett now is CFO at Vizu, according to his LinkedIn profile. Edwards has moved on to Google-backed Pixazza, and will continue to advise Digg, he wrote in a blog.

Digg gave pink slips to 25 of its 67 employees, reducing its workforce to 42 people, said former Amazon executive Matt Williams, who joined Digg as CEO about six weeks ago, in a letter to staff.

"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," he said. "It's been an incredibly tough decision. I wish it weren't necessary. However, I know it's the right choice for Digg's future success as a business. I'm personally committed to help find new opportunities for everyone affected by the transition. Digg's board members have also offered to help find placements within their portfolio companies."

This is only the latest shakeup at Digg. Earlier in 2010, the news aggregation site launched new features that failed to attract a larger audience, and former CEO Jay Adelson left in April. Company founder Kevin Rose then took the helm, overseeing the redesign of version 4 -- the New Digg -- which debuted in August to generally poor user and advertiser ratings.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Slideshows
IT Careers: 10 Industries with Job Openings Right Now
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/27/2020
Commentary
How 5G Rollout May Benefit Businesses More than Consumers
Joao-Pierre S. Ruth, Senior Writer,  5/21/2020
News
IT Leadership in Education: Getting Online School Right
Jessica Davis, Senior Editor, Enterprise Apps,  5/20/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
Slideshows
Flash Poll