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MySpace lays off 500 employees

News Corp.'s struggling social network, MySpace, on Tuesday formalized an anticipated restructuring that will result in the loss of 500 jobs worldwide, or about 47% of the workforce.

MySpace Chief Executive Mike Jones said the job cuts were necessary to streamline operations and put the site on a path toward profitability, following its relaunch last fall as an entertainment destination for Gen Y.

"These changes were purely driven by issues related to our legacy business, and in no way reflect the performance of the new product," Jones said in a statement. "The new organizational structure will enable us to move more nimbly, develop products more quickly, and attain more flexibility on the financial side."

Jones sought to detail how the social network's makeover has resulted in an "uptick" in returning and new users. Since the worldwide roll-out, he said, there have been more than 3 million new user profiles created, and more than 134,000 topic pages that provide news about music, movies, TV and celebrities. Moreover, people who follow the site's "Curators" -- or taste-makers with strong opinions in a given discipline -- increased the frequency of visits by 35%.

"While it's still early days, the new MySpace is trending positively," Jones said.

MySpace executives are under pressure to reverse the site's fortunes and arrest the loss of subscribers and advertising revenue. The number of monthly visitors dropped to 54 million in November -- down 3.7 million from a month earlier, according to measurement firm comScore Media Metrix. Advertising revenue has fallen to $347 million, down 26% from a year ago, based on researcher eMarketer's most recent estimates.

News Corp. acquired MySpace in 2005 for $580 million, with Chief Executive Rupert Murdoch outmaneuvering rival Viacom Inc. to seal the deal at a time when the social network was surging in popularity. In 2006, the site scored a $900-million deal with Google for the right to sell advertising next to searches on the site. MySpace and the search giant renewed their search and advertising relationship in December, although terms weren't disclosed.

-- Dawn Chmielewski

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Comments () | Archives (13)

MySpace's 15 minutes of fame is over. Friendster was over before that, Facebook is scheduled to meet the same fate.

MySpace is trending positively? Keep dreaming.

The first of many more as MySpace dwindles to obscurity and will be another .com that you find in history books about the beginning of online social revolution. Facebook has peaked and will be following the same downward trend as myspace is seeing.

The redesign is absolutely HORRIBLE. They have driven users away with its terrible performance. Don't believe the lies that they are upticking. That is simply not true.

MySpace was doomed the moment it allowed custom-designed profiles. Nothing like having your browser grind to a halt on a brand-new, top-of-the-line computer because you loaded someone's page!

If your browser didn't crash, it ended up blasting some terrible pop / hip-hop 90% of the time. Scrolling sent your computer into spasms of agony as it struggled to make its way down the page.

It became the refuse bin of social networking. Facebook didn't take over simply because it was newer and cooler, but because MySpace was terrible before Facebook ever existed.

MySpace has been a corpse for a while now. Time to bury it.

typical of a bubble: boom, bust

I think this decade Facebook will be yesterdays news... I am sure already there is some young 20 something coming out of school figuring out a way to suck the social networking blood from Facebook. These social networking sites are as good aslong as they breathe green($$$$). After a while it becomes boring and dull and time to put them out to pasture.
My Space was popular with the young kids but as soon as it was taken over it collasped. Same fate awaits FaceBook..... to quote B B King.."THE THRILL IS GONE"

Did they get rid of Tom?

It's time to lay off the rest of the employees, and shut it down. Or find some sucker company to buy it, quick! It will eventually fail, just like GeoCities did.

54 million....
I want music
I find it on myspace.
while i adore my beautifully created page
I blast
my playlists.
neighbors hate it .i'm sure.
they say if you're not first ,yo last.
I say
who cares.
However myspace will die
and unlike a cat
no extra lives....
IF they don't get rid of the glitches.the page hoarders.
that's my input
and remember
not everybody has your taste.

bring back myspace to how it very first was and olot of of people would prob go back to it

Anytime you sold yourself to the big guys, this is going to happen. What does News Corp know about social network? While Facebook, Twitter.. are flourishing, MySpace is wasting away with these old geezer running it. What a pity!!

One man's "beautifully created page" is another man's HOT MESS, bluflower. I can speak for your neighbors and say that nobody cares about your playlist, so invest in a pair of headphones.

Every time I ever viewed a My Space page, it was full of distracting background wallpaper, annoying music blasting, wanna-be gangsters posing with guns and money, girls posing in bathroom mirrors using cell phone cameras, and inane "shout outs" from illiterate juveniles to other illiterate juveniles. No thanks.

Facebook may be on the way out also if it keeps messing with a perfectly good format (which they've done 5 million times since I joined about a year ago).


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