Digg has announced it is to lose 10% of its workforce as the social news and bookmarking site makes plans for the next year.

In recent months the 75-strong company, that claims an audience of 35 million, has seen what's described as slowing audience growth and a pullback in online advertising.

Quantcast estimates its worldwide audience at 23.8 million, while earlier this week news that Twitter had overtaken Digg in terms of user figures promoted mutterings of the site having had its time at the top.

In a blog post entitled "brief update on Digg", Jay Adelson of Digg states: "Given the current economic climate, we've made the decision to take a more conservative approach to our expansion plans and aggressively focus on reaching profitability within the year".

In addition the company plans to introduce a direct sales team as well as "building" on their "successful partnership" with Microsoft.