We’re hearing reports that Propeller, the Digg-like news site that was once Netscape.com, has been holding a severe round of layoffs that is reducing its workforce to only a fraction of its former size only two weeks after relaunching the site. It seems that most of the cuts consist of Propeller’s Scouts and Anchors – paid employees who actively monitor the site to pick out the best stories and ensure quality control of user submitted content.
According to our tipster these layoffs have been long expected – it was simply a matter of when. AOL’s budget cuts have extended to Propeller, and rather than reduce the pay rate of management, Propeller has simply downsized its more expendable content control team.
Propeller uses this team to differentiate itself from Digg, which doesn’t advertise an active role in the editorial process and tends to sometimes display stories of lackluster quality. The budget cuts may save money in the short term, but in downsizing its editorial team, Propeller is making itself into even more of a Digg clone.
Propeller has had a tumultuous history. AOL initially launched the site as a “Digg killer” at Netscape.com in June 2006. A little over a year later, there were rumors that the site was being shut down in part because of domain disputes. The site was finally moved to Propeller.com in September 2007.
Update: Ryan Budke, Propeller’s Program Manager, responds in the comments:
“Well, as Propeller’s Programming Manager and the one who runs the aforementioned Scout team, I can say these reports are being blown a little out of proportion. We did let a few Scouts go, but it was 4 out of about 35, so that fraction we were reduced to is roughly 9/10ths.”
Budke also says that while the Anchor team has been substantially downsized (only about 2 people are currently working full time as Anchors), this was a result of gradual attrition, not because of budget cuts.
A good idea gone bad because of poor implementation.
It really had potential – it just got to the point that only top members got anything on the homepage.
Also there was no real sense of bounding, branding or community identity
Digg or no Digg…does anybody really make money on the internet? Ok maybe a few…everything else seems like just hot air!
I’ve seen former AOL employees at pretty rough looking startups all over LA. I kid you not. They wind up here, doing photoshop. You can mistake a lot of them for Wendy’s employees. Not that it’s a bad thing.
AdBot Banner Ad on TC keeps on clicking by itself reseting over and over. not reseting the page, just the banner ad. Very irritating. Is this a CPM issue? Only happens on TC. 2nd notice.
Would you please get off the interwebs, you obviously have trouble with it. I hear the plumbing business is lucrative…
Well, as Propeller’s Programming Manager and the one who runs the aforementioned Scout team, I can say these reports are being blown a little out of proportion. We did let a few Scouts go, but it was 4 out of about 35, so that fraction we were reduced to is roughly 9/10ths.
As always, if TC would ever like to get a hold of us for comment, we’re available.
It’s a shame Jason didn’t bother to contact you ahead of time. Page views are important, however, so I’m sure you understand.
You better thicken that skin over at AOL b/c next to yahoo, y’all are the punchy bag of the tech world. Spin out, change your name, and capitalize on all the nice properties you’ve acquired (along with the ones you had prior, like AIM).
@Propeller Scouts,
If you are into travel and have a blog, and want to leave the mother ship, contact me via Twitter and I’d love to see you might be interested in some new things we are working on at UpTake!
tech crunch, why not do actual reporting? send an email? pick up the phone? why not actually make an effort to find out what’s going on?
Personally, I prefer Nestle Crunch.
Your reporting is the equivalent of “THE SKY IS FALLING”.
If you brought any of this to Mr Budke, or any of the other propeller people, I’m sure they would be happy to give you whatever facts it is you wanted, but I suppose that’s not as fun as pulling things out of your ass.
Here, let me help.
Fidel Castro is dead. So is that formerly fat subway guy. Bob Hope kicked the bucket, Lindsay Lohan got run over by a bike and died, etc.etc.etc.
You are nothing more than the Perez Hilton of the technology world, congrats.
Look, now I’ve lost sympathy for the AOLers. They obviously all hit the blog in succession and are whining like the yahoo losers. Very sad.
[Notice it all starts after ryan bdke's comment ("Mr Budke", LOL!), including mine, but I'm no AOLer]
TC – Why make news up?
Another AOLer. doesn’t even bother to read any other comments. Ironic? Yep.
trying to figure out why techcrunch avoided blinkx hostile takeover bid but publishes snoozers like this post.
Seems to me it’s just business as usual for everyone involved. I do think that 4 people being let go being newsworthy is a little bit silly…my company does that all the time and no one writes about it.
TC writes: “rather than reduce the pay rate of management, Propeller has simply downsized its more expendable content control team”
That reads like it came out of Valleywag. Is that what TC wants to be?
and now you have changed the headline but given no indication that you have done so…way to go, tech crunch! classy and ethical.
We did let a few Scouts go, but it was 4 out of about 35, so that fraction we were reduced to is roughly 9/10ths.
Worst TC Story ever. 4 Employees and you write an article about it, considering there have been massive changes losing 4 employees in the wake of em doesn’t seem entirely newsworthy.
TC seems to be inching more towards Valleywag these days .. gone are the days when I used to visit TC and learn or check out something new .. these days its plain old gossip
aol has enough challenges – why make up more?
I see “dropping like flies” is gone from the headline.
who cares any way……the site is not a key part of aol yet so what is the news here?
TC chasin Valleywag – agree with that sentiment above
Drapeau – show us what you have coming to silence the TC critics.
stephanie (former aoler)