MySpace Layoff Rumors Intensify

One-half of employees might be let go this month

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[ Social Media]

Rumors concerning the possibility of drastic layoffs at MySpace first surfaced on New Year’s Eve, and it seems that the start of 2011 hasn’t improved the situation.  A new report holds the percentage of employees who may be affected between 33 and 50, and even indicates that the layoffs could occur in the next few weeks.

There’s not much more to tell at this point.  Jessica E. Vascellaro and Russell Adams just wrote, "One person familiar with the matter said the site could lay off between a third and a half of its roughly 1,100 employees.  Another person said the moves could be announced as soon as this month."

Harsh as that may sound, the layoffs would arguably represent a less drastic measure than other possibilities, as well.  Consider that, less than two months ago, News Corp.’s COO said MySpace’s losses "are not acceptable or sustainable."  Talk of a sale resulted, but no potential buyers came forward.

Talk of a shutdown began to circulate, too, with not many people coming to MySpace’s defense.

Credit for first reporting the likelihood of another major round of layoffs at MySpace goes to Liz Gannes, in any event.

We’ll be sure to keep an eye on the situation.

MySpace Layoff Rumors Intensify
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  • Jason

    Facebook gets way more traffic and is on the up rather than the down. I don’t even understand why musicians stick around especially since you can easily create a band page on Facebook http://www.faceitpages.com/facebook-band-page.php

    I think as more bands make the switch it will leave MySpace in an even greater decline.

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