More Layoffs Expected At MySpaceBy: Doug Caverly - June 11, 2009
A significant number of MySpace employees may soon have to acquire cardboard moving boxes and update their resumes. Although nothing’s certain, there have been several indications that a large wave of layoffs will hit in the near future.
Jason Kincaid received warnings from at least two different, and perhaps well-placed, individuals. He reported afterward, "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."
Then there’s what Richard Greenfield, a Pali Research analyst, had to contribute. According to Eric Savitz, this expert "thinks large cuts are inevitable."
And it would make a certain amount of sense for MySpace to streamline its operations, after all. The economy’s still not booming, and negative statistics about online advertising are easy to find. Plus, News Corp.’s stock hasn’t done well over the past year compared to either Microsoft’s or Google’s, so the move may satiate shareholders.
MySpace did, in case you’re curious, experience a 2.39 percent bump in unique visitors between April and May according to the latest Compete data. Nine days ago, Nielsen put MySpace ahead of Facebook in terms of video, too.