• ContentNetworks, Wednesday, March 2, 2011 12:14 PM

In direct response to Google adjusting its search algorithm to suppress content farms, Mahalo has reportedly cut its staff by 10%. In less than a week, "The Google changes have led to a significant dip in our traffic and revenue," Mahalo CEO Jason Calacanis and president Jason Rapp told staffers in an email obtained by ContentNetworks.com. "It's hard not to be disappointed, since we've been spending millions of dollars on producing highly professional content."

Mahalo's heads are also re-evaluating their freelance content production, "pausing it in the near term and determining how to best produce the high-quality educational material we aspire to in the long run." Video production efforts, however, will be unaffected. Also of note, despite Google downgrading Mohalo's "experts," Calacanis is confident that experts will eventually be valued greater than journalists online.

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