Digg is cutting 10% of it's workforce. The company has 75 employees so the cuts would equal 7 or so people. I like Digg.com and Revision3.com so I hope this gives them more runway so that they survive long term.
The partnership Digg has with Microsoft to sell advertising units will continue. But Digg will be rolling out higher-profile advertising programs, and features on the site to support them.
The company doubled in size and raised new capital in 2008.