While everyone and their mother now uses Digg to get news, Digg is not immune to this lousy economy. They’ve had plenty of investors provide them with funds to keep the enterprise going.

However, Digg is not a profitable venture as of yet. Jay Adelson, Digg CEO, says that ” we’ve made the decision to take a more conservative approach to our expansion plans and aggressively focus on reaching profitability within the year.” This translates into cutting jobs at Digg; 10% of the team will be let go. Digg will also be adding a new sales staff to help with sponsorships.

There’s a small civil war beginning on Digg.com. If you don’t know what Digg is — there is no way to finish that sentence — everyone knows Digg.

In the past couple of days, a bunch of stories have made it to the front page of Digg demanding change. The stories claim that “power diggers” have taken over Digg and it is no longer a fair playing ground for all users.

The claim is that the stories themselves no longer make it to the front page of Digg. If identical stories are submitted by a regular user and a power digger, even if the regular user submitted the story first, the power digger’s story will make the front page. Some users are stating that they won’t even submit a story to Digg because they don’t think it will ever reach the front page.