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MySpace Faces Major Layoffs, Possible Sale

Newly redesigned MySpace as entertainment hub
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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.