Social news site Digg has confirmed that it will cut 10 per cent of its workforce in a move described by founder Kevin Rose as "the right decision for the long-term health of the company".
Rose said in an email to staff that the decision had been "extremely difficult" but is the only way for the company to adapt as it looks to implement a major redesign to the site.
"In order to achieve our goals, we are putting more emphasis on engineering and development efforts. We are still hiring for these teams as they are critical in getting us to where we need to be for the future," he said.
The email does not state where the cuts will be made, but Rose said that the company is holding a meeting for staff at 3pm to offer more information.
Digg was formed in 2004 and valued two years' later at around $60m (£40m). But the cutbacks suggest that the company is facing an uncertain future as sites such as Facebook and Twitter dominate the social networking space.
In a similar move, AOL recently announced plans to sell or close social site Bebo just two years after acquiring the company for $850m (£579m).
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