MySpace facing massive layoffs, headed for the trash heap of networking sites

Stephen Pate, NJN Network, Charlottetown, Prince Edward Island, Canada, June 15, 2009 with story from TechCrunch

TechCrunch is reporting that MySpace is planning to lay off more than 25% of its staff. The social networking site has fallen far behind Facebook, last year’s social networking darling.

With Twitter galloping to the head of the pack with 140 character word bites, MySpace has become irrelevant. The format is too old. The programming skills beyond the average user.

MySpace is largely a site for musical acts to promote their music, actually to park their music. No one spends time browsing MySpace.

From TechCrunch
“MySpace is about to have a major wave of layoffs, according to multiple sources close to the company. One source describes the number of people affected as “massive”, while another source says that the layoffs will likely affect between 300 and 500 employees. It’s unclear if these numbers apply to MySpace alone or its parent company Fox Interactive Media, but MySpace makes up around 1600 of the 2900 employees in FIM, so it’s likely that the social network will be hit hard.”

“Why the cuts? MySpace traffic is plummeting, and revenue is going to take a huge hit when the Google deal terminates in mid 2010. MySpace already has an uphill battle on its hands as it vies to compete with Facebook, and it’s no longer going to have that very lucrative revenue stream to lean on.”

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