Digg lays off 37 percent; Publisher bails for startup

CEO Matt Williams e-mailed staffers to announce that "the burn rate is too high" at the company and that it would be laying off 25 of its 67 staffers.

Long gone are the days when then-Digg execs Kevin Rose and Jay Adelson would make joint appearances at tech industry conferences and giddily discuss a cluster of new features coming to the social news site--as well as the fact that they were, invariably, looking to hire new employees.

On Monday, following a report in AllThingsD that publisher and chief revenue officer Chas Edwards was bailing for a start-up, Pixazza, CEO Matt Williams e-mailed staffers to announce that "the burn rate is too high" at the company and that it would be laying off 25 of its 67 staffers, a total of 37 percent.

Williams, a former Amazon executive, joined Digg as CEO fewer than two months ago, following a major executive shake-up in which CEO Jay Adelson departed and was replaced temporarily by Rose. In the meantime, other prominent Digg employees started trickling out the door, a few heading to AOL and some to start-ups like SimpleGeo (co-founded by former employee Joe Stump) and Path. A month later, Digg laid off about 10 percent of its staff.

For more on this story, read Beleaguered Digg announces more layoffs on CNET News.

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