Some probably saw the item on ValleyWag earlier this week. Now LJ has responded
As has been reported, we had staff cuts at LiveJournal Inc. this week. Early media reports seriously exaggerated the impact of the decision on the continued existence of LiveJournal as a company and misrepresented the scope of the staff cuts. The cuts were part of a restructuring that shifted global design and product development to the LiveJournal office in Moscow. Product decisions for the English-language site will still be made in the U.S., and LiveJournal Inc. remains headquartered in San Francisco. You can read more about the reasoning behind the restructuring here.
The restructuring is done with an eye to the future to ensure the long-term viability of LiveJournal as a business. As a team, we know that LJ has a great future as it prepares for its second decade. We recently invested a considerable amount on all-new server equipment and a facility in Montana to house it all as part of our commitment to the longevity of LJ. We will be around for years to come and we're committed to ensuring that your journals, friends pages, and communities will be, too.
As with any of these kinds of decisions, it's always hardest to lose valued team members. We're very sad to see our colleagues go and want to acknowledge all the hard work, dedication, and love they've given LiveJournal over the years. They will be missed. While they are no longer a part of LiveJournal Inc., they are still a part of the LJ community.
LiveJournal is enormously popular with authors, and I know authors have invested a lot of work in blog content on LJ, so I think it would be very wise to take measures to preserve that content outside of the LJ servers. How? Frankly, I’m not sure, but I’ll do some investigating. Meanwhile, if anyone has a good way to back up an LJ profile and blog, please post it in the comments.
(There’s recent precedent for massive data losses from blog hosts, so it’s probably worth thinking about this no matter who hosts your blog.)