With layoffs and top execs gone, Digg needs to redesign its business, too

Social news aggregator Digg laid off more than a third of its staff Monday in the wake of a failed redesign, and its top sales and finance executives left — suggesting that more than just the website’s look and feel need fixing. In a post on the company blog, new CEO Matt Williams claimed the cuts, affecting 25 out of 67 employees, were needed in order to achieve profitability by mid-2011.

Digg founder: We let Digg stagnate

Digg, the pioneering social-news site which lets users vote on top headlines, began to lose momentum during the recession because it pulled engineers from designing new site features to work on improving revenue, founder Kevin Rose said today.