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While everyone and their mother now uses Digg to get news, Digg is not immune to this lousy economy. They’ve had plenty of investors provide them with funds to keep the enterprise going.
However, Digg is not a profitable venture as of yet. Jay Adelson, Digg CEO, says that ” we’ve made the decision to take a more conservative approach to our expansion plans and aggressively focus on reaching profitability within the year.” This translates into cutting jobs at Digg; 10% of the team will be let go. Digg will also be adding a new sales staff to help with sponsorships.
For years, people wondered how exactly websites make money. Even if you become a household name like Digg, you can still run into simple business issues like turning a profit. Adelson hopes that the sales team and Digg’s partnership with Microsoft will help get the company in the black.
Read: [News.cnet.com]
Read: [Digg the Blog]
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