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Rumors True: MySpace Reduces Staff by 47%

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Turns out the MySpace rumors were true. The Beverly Hills-based social networking company will give roughly 500 employees the heave ho, according to Mashable.

The site relaunch and logo rebranding wasn't enough to stop the declining traffic and revenue woes that have plagued MySpace for some time and CEO Mike Jones acknowledged that "today's tough but necessary changes were taken in order to provide the company with a clear path for sustained growth and profitability."

Despite the challenges, MySpace is committed to further owning the new "entertainment hub for Gen Y" they recently launched and plan to partner with several international companies to buoy traffic and ad revenue with their new focus.

No word on the "possible sale" portion of the previous rumors.