Support for LAist comes from
We Explain L.A.
Stay Connected

Share This

This is an archival story that predates current editorial management.

This archival content was written, edited, and published prior to LAist's acquisition by its current owner, Southern California Public Radio ("SCPR"). Content, such as language choice and subject matter, in archival articles therefore may not align with SCPR's current editorial standards. To learn more about those standards and why we make this distinction, please click here.

News

MySpace Faces Major Layoffs, Possible Sale

myspace.jpg
Newly redesigned MySpace as entertainment hub
Before you read more...
Dear reader, we're asking you to help us keep local news available for all. Your financial support keeps our stories free to read, instead of hidden behind paywalls. We believe when reliable local reporting is widely available, the entire community benefits. Thank you for investing in your neighborhood.


A cheeky new logo, a revamped site and new account integration with Facebook may not be enough to keep Beverly Hills-based MySpace afloat and 50 percent of its employees could face layoffs, according to All Things Digital.It's not a secret that MySpace has struggled long and hard to re-establish revenue and traffic dominance in the social networking game. On a November earnings call, News Corp's COO said the "current losses are not acceptable or sustainable" and many believed this signaled a renewed push to make dramatic changes in the coming months. Mashable notes, "MySpace is bleeding money and there's no end in sight to the bloodshed."

In anticipation of new features and the promise of better things to come with the much-hyped site relaunch, "large-scale cost-cutting and exploration of an acquisition" were reportedly "on hold." Yet, the newly refreshed MySpace launched as an entertainment hub six weeks ago and it seems the "on hold" is now back on. All Things Digital reports that the recent "redesign and strategy moves are not expected to result in a major turnaround for MySpace."

Staff was given the last week of December "off" as a way to save company expenses while MySpace and News Corp. Digital Media executives contemplate the fate of the company, including a possible sale. ATD notes that Facebook game-maker Zynga tops the list of rumored companies most likely to make an acquisition if that's how it all goes down.