Social bookmarking company Digg.com is laying off 25 people. They have about 67 employees and now they will be down to 42. One of the key executives that Digg.com is losing includes chief revenue office Chas Edwards. Digg plans to refocus on the Digg.com product going forward. The company earned $15 million and is not profitable this year. Digg.com hopes to reach profitability by mid-2011.

Stack Overflow recently hit 1 million questions and they receive about 60 million page views per month. Stack Overflow runs on only 5 servers. Social bookmarking service Digg.com receives 200 million pageviews per month and runs on 500 servers. Proportionately something seems off according to Joel Spolsky, the co-founder of Stack Overflow.

A few days ago, Digg founder and former CEO Kevin Rose conducted a poll to see how many Digg users want to have the “Bury” button back. The Bury button empowered Digg users to vote down on stories that they do not like. Digg removed this feature after launching the fourth version of Digg.com.

Earlier this week Digg co-founder and former CEO Kevin Rose posted a poll on his Twitter account about whether the Bury feature should be added back. It turns out that a good amount of Digg users appreciated this feature to help filter out unwanted content. The Bury feature was removed in the new version of Digg, which annoyed a lot of users. According to the poll, 69% of those who voted want the Bury feature back. 10% do not want the Bury feature to be added again. And 22% voted for Cats, or a poll choice that does not mean anything at all. [Twtpoll]

I have just been notified that 3 power Digg users are working on a Digg.com replacement. The line on the homepage of the holding page currently says “Digg is dead, we are going back to basics.” Currently there is a contact form and a place to input your e-mail for updates on DiigMe.com. As reported earlier, Digg’s traffic has dropped 26% after the new website design went live. The new design has been buggy and there is less of an emphasis on the “homepage” itself. More details to follow as we find out more. Check back on this post.

Propeller.com is a social media link-sharing website that is similar to Digg.com and Reddit.com. Somebody submits a story and if it gains enough popularity, that story hits the homepage. Propeller.com was created out of an experiment by AOL subsidiary Netscape.

The Reddit alien logo is one happy camper right now. Reddit’s traffic has been surging over the last two months. During Digg’s peak, they were hitting 40 million unique visitors per month, but ever since they launched a new design, traffic has been down 26%.

Digg has hired Matt Williams as the new CEO. Williams replaces interim CEO Kevin Rose and former CEO Jay Adelson. Before Digg, Williams worked as an executive at Amazon.com.