Social Media Digg announces Lay offs/ Hirings

Jay Adelson, CEO of Digg, the social media site, announced that the company would be laying off a “very small” part of its workforce. He also said that they would be hiring a new direct sales force and head of sales to push company profitability throughout 2009.

Digg, a company of only 75, will be laying off about 10 percent. Adelson emphasized that the company would be focusing on strong profits and growth.

Digg’s partnership with Microsoft, in which they sell standard advertising units, will not be affected. In fact, Digg will be coming out with some new higher-profile advertising programs.

As technology changes at such a blinding pace, no media company is completely sure of anything. However, Digg has not seen any of its advertising revenue decrease from it’s Microsoft partnership.

Adelson also said that the layoffs would be in areas “not core to our function.”

“We’ll be shifting some of that cost to a sales force,” he said.

Their addition of a new sales force is bound to be a part of their focus on “profitability,” but what does that say about the emerging business model of social media?

To figure that one out, keep posted on all business related issues at Employment Crossing.