You may have read my earlier post on the mass firings done at Demand Media a while back. Well, it looks like the reason for all of the firings is clear.
I checked the queue for available assignments and it's down to 13,000. (Note that this 13,000 includes all of the special sections I am cleared for.) This may sound like a lot, but probably 90% of those articles can't be written by 99% of the population.
With there being very little work, there isn't a need for as many writers.
The downsizing may be due to the fact that DM's stocks are crashing. At last check, a share was only worth around $9. Compare that to the $24 per share they were getting in March, and you can see how far they've fallen.
If you're using DM as your main source of income I am strongly urging you to find more clients. You never know when Demand Media may need to do another mass firing.