News Summary

Digg, the startup led by Kevin Rose, has laid off a significant portion of its staff and shut down its app as part of a major restructuring effort. Despite these setbacks, the company is not closing down. Instead, Rose plans to focus on rebuilding Digg with a smaller team. The decision comes as the company struggles with bot spam that undermined the integrity of its user-driven content ranking system. Digg’s challenges also include competing with established platforms like Reddit. The site, originally acquired by Rose and Reddit co-founder Alexis Ohanian, aims to offer more control and ownership to communities. The restructuring involves a leveraged buyout with involvement from True Ventures, Seven Seven Six, and S32.