Owen Thomas at Valleywag has some edgy but accurate analysis of Digg’s recent layoff announcement. We’d have to agree that Digg is quickly losing relevancy in the Web 2.0 world. While we were once addicted to Digg, we’ve now removed Digg front page items from our RSS feed. Too much noise, too many top ten lists, and constant stream of digital blue ball invoking almost provocative content to be bothered with it. Breaking news that one used to mine from Digg can now be garnered more efficiently through sites like Twitter and Friendfeed.

What is your assessment of Digg? A site who’s glory days are behind them or still the diamond of the web 2.0 world?

Digg, the raucous online news-rating site, has laid off 8 people from its 75-person workforce. CEO Jay Adelson writes that the company will “aggressively focus on reaching profitability within the year.” There’s no way.

Digg, as of last fall, was losing money at the rate of $5 million a year. Its payroll has grown since then; cutting 8 people is unlikely to save it much more than $800,000 a year. At best, the layoff might get Digg back to its 2008 pace of losses. (ValleyWag)

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