"We have acknowledged there are some reductions in headcount in some places and some additions in others," a Getty spokesman said, also declining to say whether overall the company was increasing or decreasing the number of jobs.

In a memo obtained from a source close to the company, Chief Executive Jonathan Klein said it must react quickly to changes in technology and trends to be a high-growth company in the future.

"Business is changing as a result of the digital information revolution and our industry is, once again, in a state of transition much as it was when we created Getty Images in 1995," Klein wrote.

"The result is that it is no longer enough to have a source of content; it is no longer enough to be able to deliver it digitally; it is no longer enough to have many photographers under contract."

The world's largest provider of stock and editorial photography -- news or sports images that are sold to other media organizations -- was once the darling of growth investors and saw its stock quadruple in value between 2002 and 2005.

Since then, competition has stiffened with Getty's prices undercut by smaller rivals. The Seattle-based company has twice lowered its 2006 earnings outlook and delivered quarterly results below market expectations, sparking a 40 percent slide in the stock since April.

Alan Meckler, chairman and chief executive of rival Jupitermedia Corp. (JUPM.O: Quote, Profile, Research), said he had received a sudden influx of applications from a number of former Getty photographers.

"We got a tremendous raft of applications, which has been to our benefit," Meckler told Reuters. "We had some positions in Europe that were a little difficult to fill and all of a sudden we are getting all of these resumes from (former Getty photographers) from worldwide."

Meckler said it appeared that Getty laid off photographers in the United Kingdom and Germany, as well as some in New York.

Shares of Getty fell 1.5 percent to $49.43 on Monday on the New York Stock Exchange.