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Video start-up Revision3 joins the layoff club

A source close to the production company, which was founded by Digg's Kevin Rose and Jay Adelson, tells us that nine people have been laid off.

Revision3, the online-video production company started by Digg executives Kevin Rose and Jay Adelson, is the latest company to go through a round of layoffs. A source close to Revision3 tells us that nine people have been let go, plus a tenth who will be retained as a freelancer. Before the layoffs, Revision3 had approximately 35 employees.

Not surprisingly, news of the layoffs is all over Twitter: the first report of it appears to have come from Rocketboom founder Andrew Baron. He said he had received an e-mail from Damon Berger, senior director of creative and business development at Revision3, who said he was one of those laid off.

Blog guru Leo Laporte twittered about the layoffs several minutes later.

Revision3 posted an explanation to its blog later on Monday morning: the shows Pixel Perfect, Pop Siren, and Internet Superstar have been discontinued. The post did not say anything about how many layoffs there have been, though.

The start-up has also dropped its licensing deal with popular Web shows Epic Fu and Wine Library.

"About a week ago Revision3 let us know that despite a year of record revenue and viewership, they are feeling the effects of the economic crunch and need to make some urgent and tough decisions," a post on Epic Fu's production company's blog read. "As of the end of 2008, Revision3 will no longer be the Web licensing partner for Epic Fu, and we'll be leaving their network of shows. We wish Revision3 luck in the coming months and remain a fan and supporter of their shows."

In light of the economic downturn and the end of its Revision3 contract, Epic Fu production company Smashface has opted to make some layoffs as well, letting three employees go.

The San Francisco-based Revision3 has enjoyed most of its popularity among the Twitter-friendly geek set, signing deals with blogger personalities like wine critic Gary Vaynerchuk and former CNETer Veronica Belmont.

Lifestyle programming director Sarah Lane, a Revision3 mainstay, wrote on her blog on Monday afternoon that she had been laid off as well.

UPDATE: We have heard from a source close to Revision3 that in addition to Lane and Berger, Revision3 has laid off director of comedy programming and Internet Superstar host Martin Sargent and six others. Diggnation producer Glenn McElhose has been laid off as well, but will remain at Revision3 as a freelancer.

Last updated at 3:04 p.m. PDT.