MySpace On The Ropes? Huge Layoffs Rumored
December 31, 2010 at 11:05 AM (PT)
Multiple sources have told ALL THINGS DIGITAL that MYSPACE is planning significant layoffs that could affect up to 50% of its employees, MASHABLE reports. The possible moves are in response to owner NEWS CORP's demand that MYSPACE management undertake "more drastic cost-cutting measures ... in the wake of MYSPACE's decreased revenue and traffic. "
MYSPACE has declined to comment on the subject at this time.
MYSPACE has already made significant efforts to revamp its image. It introduced the Hijacks program, where celebrities such as the BLACK EYED PEAS and JACK BLACK could "take over" the site for short periods of time. Last month, MYSPACE partnered up with FACEBOOK, making it possible for users to log in with FACEBOOK.
Apparently, the moves have yet to slow the decline of the one-giant social music site. The massive layoff rumors coincide with other speculation that NEWS CORP. is actively looking to sell off MYSPACE.