Santa Monica-based Mahalo, the search and news site run by Jason Calacanis, has cut 10 percent of the firm's staff, Calacanis said in a post on his blog Wednesday. and Sequoia Capital, and provides human-edited search pages and news summaries. Calacanis said that the moves were due to a "challenging economic environment." According to Calacanis, the firm is "fairly certain" that advertising for the next two years will be "severely depressed."