The employment news is very gloomy on Jan 22. Microsoft announced a cut of 5000 of its employees ie. 5% of its workforce. Simultaneously, Digg also downsized its workforce by 10% out of 75 employees. The move followed the recent layoff in October at sister company Revision3. Digg attracted 6.8 million unique visitors in December in US, only 2 percent up since its last peak in Jul.
Digg raised $28 million last year as venture capital in order to expand the business globally in other languages. But, the move is on hold due to global recession and drop in on line advertisement revenue. The company mostly depended on Microsoft for its targeted revenue so far. Now, they are planning to focus on advertising infrastructure. They are also expected to integrate with Facebook Connect in the next two months.Filed under Collaboration Tool, Open Source Platform | Tags: digg, Facebook, Microsoft, Recession | Comment Below