Sounds like search outfit Ask is having a bit of, ahem, engine trouble. Employees tell Valleywag that the company is buzzing with talk of layoffs. And now come reports that Ask proprietor InterActiveCorp (IACI) may soon scrap Teoma, the engine that powers the company’s search. “There is indeed a big shake-up coming,” a company insider told Silicon Alley Insider. “A new Ask. Some think a reduction in workforce is likely. There are no sacred cows, Teoma may be sold or simply abandoned, which is hundreds of engineers who work on the core search engine, in place of just using Google’s search with our special brand of user interface.”

No sacred cows, huh? If that means Ask is a student of the Jerry Yang School of Corporate Turnarounds, well … maybe Microsoft will have a little money left over after it swallows Yahoo.

UPDATE: PaidContent has confirmed that some 100 Ask employees will be sacked come April.

“We have certainly not bitten an inch out of the hide of Google,” Diller said earlier this week. “I’ve been daunted by the progress of that. … The challenge of the year … is to get people to try [Ask], experiment with it and then adopt it.”

With that in mind, Diller’s making some changes. Ask.com Chief Executive Officer Jim Lanzone–who claimed the CEO spot in April 2006 when Steve Berkowitz took a job at Microsoft–is leaving the company in a management shake-upr that will see former Match.com CEO Jim Safka take his place.

News of the leadership change comes as Ask parent InterActiveCorp prepares to spin off its HSN (Home Shopping Network), Ticketmaster, Interval International and LendingTree properties. “These changes are intended to strengthen and streamline the operating structure at IAC, both leading up to our intended spin-offs, and beyond,” said IAC CEO Diller.

Well, we’ll have to see about that. Certainly, Safka seems like a worthy candidate for the job. As CEO of Match.com from 2004 to 2006, he grew the site’s membership and revenues substantially. That said, Lanzone is also a very smart guy. If he wasn’t able to turn Ask into a legitimate player in the search market, one wonders if anyone can.

To keep you abreast of tech news while he’s away, we’re compiling a daily digest of 10 must-read tech stories. Our Tech 10 appears below.

1. Google U-Store-It: The online search leader is prepping a service enabling users to store on the company’s computers any files (text, music, video) kept on personal-computer hard drives, reports The Wall Street Journal. The password-protected system would allow Internet access to the files from any computer or mobile device.
2. Verizon Opens Wide and Says ‘Yah’: In a sign that “U.S. phone carriers’ iron grip on the wireless industry may finally be loosening,” (according to The Wall Street Journal) Verizon Wireless will open its network to wireless devices, software and applications not offered by the company. Verizon plans a conference to detail “the standards and get input from the development community” about how so-called “BYO phones” will be allowed on its network early in 2008.
3. MySpace Feeds You and Your Friends: The social-networking giant will unveil on Thursday “Friend Updates,” its news-feed feature. Michael Arrington of TechCrunch explains it all for you.
4. InterActiveCorp to Activate China Web Site: IAC/InterActiveCorp plans to invest $100 million on an Internet start-up in China, shipping its Ask.com search engine to that hot market as well, according to The Wall Street Journal.
5. Intuit Grabs Homestead: The financial software firm has paid $170 million for the small-business Web service provider, a move Eric Eldon of VentureBeat posits will help the aging Intuit “stay relevant to the growing number of businesses that rely on Web-based services.”
6. Reduce the Price, and They Will Buy: Deep discounts in its PlayStation 3 video-game console reaped high sales for Sony post-Thanksgiving. The 245% jump in North American PS3 units sold, according to Bloomberg, reflects price cuts Sony initiated to boost the console’s competitive edge against Microsoft’s Xbox 360 and Nintendo’s Wii.
7. NBC Universal Sees the TiVo Light: The broadcaster announced today that it had signed a deal to become the first of the major TV networks to use TiVo’s viewership research and interactive ad products, according to The Wall Street Journal.
8. Yahoo Flubs Cyber Monday: Outages plagued the online company yesterday during heavy holiday traffic on Cyber Monday, the first Monday after Thanksgiving when many online merchants offer discounts to woo consumers. Tech Check’s Jim Goldman says Yahoo scrambled throughout the day to fix the problem, but thousands of merchants were adversely affected.
9. An End to Coal in Our Lifetime? Google is mobilizing its considerable resources to eliminate one resource: coal-generated electricity. The initiative, known as RE<C, will focus on solar, wind, geothermal and other potential breakthrough technologies. But there’s no guarantee Google’s push to develop electricity from renewable energy resources, says Doug Caverly of WebProNews“will have more luck than however many corporations and inventors have already tried their hands at this sort of thing.”
10. Tiffany Miffed at eBay: The renowned retailer of fine jewelry has accused the online auctioneer of abetting the sales of counterfeits, reports the New York Times. Tiffany’s lawsuit seeks to force eBay to change its auction procedures, which, if successful, could jeopardize eBay’s business model.

–posted by Associate Editor John Sullivan