Big layoffs ahead at Myspace?
The social-networking site is reportedly considering a significant restructuring.
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.
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