Big layoffs ahead at Myspace?

The social-networking site is reportedly considering a significant restructuring.

By Kim Peterson Dec 31, 2010 12:12PM
Credit: © LOIC VENANCE/AFP/Getty Images
Caption: internet homepage of the myspace websiteMyspace employees have plenty to be nervous about heading into the new year.

The has-been social-networking site is mulling significant layoffs, perhaps as much as half of its 1,100 employees, AllThingsD reports. The entire staff was off the last week of December to save money.

Myspace, a division of News Corp. (NWS), is likely seeing less money flow in now after it struck a new ad deal with Google (GOOG). Myspace previously had a hefty $900 million contract with Google, but it expired last fall.

The two companies negotiated a new partnership, but the money was nothing like that of the previous arrangement, AllThingsD reports. Post continues after video:
"The first deal got done when Myspace was white-hot, and Google was competing fiercely with Microsoft to lock up prime real estate," Peter Kafka writes. "Now, of course, Myspace is well into a protracted decline."

The specter of layoffs comes as Myspace is trying to reinvent itself to reach Generation Y. Myspace has given up trying to compete with Facebook and Twitter and now wants to be a niche site focused on entertainment.

Tags: internet
7Comments
Jan 1, 2011 10:20AM
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I don't get why they feel compelled to be everything to everyone. The site started with a focus on promoting bands and that was what made it successful. Now it's just an unmitigated disaster.
Dec 31, 2010 8:13PM
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This new myspace sucks, I dont understand why it changed if it was fine the way it was before, all the people that left myspace are on facebook and all these other sites that are beating myspace now, eventually myspace will shut down since its already a joke anyways!!!
Dec 31, 2010 10:49PM
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Oh heck I didn't even know they still existed.
Dec 31, 2010 10:30PM
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THE NEW SUCKS THE OLD WAS BETTER WUT THE **** IS UP WITH TOM.....HE LOST HIS MIND N HIS FOLLOWERS.
Dec 31, 2010 1:24PM
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This is a stupid move and hope it crashes for good. They tossed everyone under the bus.
Dec 31, 2010 8:55PM
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Who cares! I have my own space. And don't use any other space. .... Be well and Happy New Year!   2011 will be a real Gas! Smile
Dec 31, 2010 2:21PM
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Who would want to enrich Rupert Murdoch anyway, people in the generation (Gen Y as the Fox/NewsCorp people call it) that are the heavy users of 'social networking' are not the biggest fans of this totally slanted politically motivated company and man.  
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