Those of you who have been interested in blogs for several years are probably well aware of the company Technorati. This website made a splash by becoming the first market-share dominator in the entire Web 2.0 space, especially in the blog search engine space. But times have changed and Technorati is struggling to hold on.

The situation in Technorati is quickly shifting to more difficult, seemingly by the day. As TheDeal.com reported on Friday, the founding CEO of the company recently stepped down. In addition, the company has been forced to recently slash eight jobs to adjust the company's expense structure. Perhaps the most startling of it all -- Technorati is quickly losing its dominant market share position.

According to research firm Hitwise, Technorati's number one market share position is now just secured by 1%. The company currently stands at 34% of the blog search market, while Google's blog search product is a strong and growing 33%.

As you can see from the chart below (courtesy of Alexa.com), Technorati's page views figures are well off of their peak. Understandably, this traffic decline has been a huge catalyst to a weakening position in the blog search market, as well as financial difficulties, because for most internet companies, traffic is everything.

Internet followers are no stranger to watching Google (NASDAQ: GOOG) enter a space and subsequently dominate it. However, just a year ago the future for Technorati looked incredibly better as it boasted very strong venture capital funding, a solid first in blog search market share, and surging traffic statistics.