MySpace expected to lay off 550-600 people

by Bradley Wint on January 11th 2011 at 1:04AM

Today, MySpace is expected to shed some of its excess workforce capacity, as it transforms itself into a music social network.

The once giant social friends network, saw a rapid decline after Facebook took away most of its user base. Since then they have changed their outlook towards the music industry, but have since been struggling to regain any foothold. As a result, they have been getting rid of excess staffing and redundant arms of the company.

Those said to be affected most are international employees, and the owners (News Corp.) are hoping to sell off the firm to a big name like Yahoo, but that may be unlikely since Yahoo themselves recently did some shedding of subsidiary firms. What’s next for MySpace? Is it a doomed firm or do they still have a chance if they change a bit?

Myspace, which has been struggling to revitalize itself, is expected to lay off 550 to 600 of its staff of just over 1,000 tomorrow, according to several sources.

NetworkEffect first reported news of the large-scale cuts at the end of December.

But now, the social-network-turned-entertainment-hub has set a date–January 11–and is working on finalizing the people it will let go, which will likely include a significant number of international employees.

The Beverly Hills, Calif.-based company will be touting the changes as a restructuring to shed “legacy” businesses and products.

Unfortunately, the context for that rationale is that Myspace is shedding a full half of its staff.

After the layoffs, the News Corp.-owned Myspace will turn its sights to sale options, as I also reported.

The company is primarily being shopped to private-equity buyers, although one intriguing possibility currently being raised within News Corp. is to try to sell Myspace to Yahoo.

Internally, Myspace staffers have been expecting layoffs in early January for some time, with the numbers circulating being as high as 70 percent of the company’s staff.

Follow Us On Facebook

blog comments powered by Disqus
Why was my comment deleted?