MySpace cut staff in half

January 12th, 2011 - 8:46 pm ICT by Aishwarya Bhatt  

New York, Jan 12 (THAINDIAN NEWS) News Corp has confirmed that it will indeed be cutting half of the workforce at MySpace.

The announcement was made on Tuesday in a statement. The company revealed that about 500 of its current workforce will be made to go.

Many people believe that the move is intended to set the stage for the social network site to be sold. The company is said to be performing badly financially and it is believed that selling it off is an option that the directors have considered.

The statement which was signed by the chief executive, Mike Jones, stated that, “Today’s tough but necessary changes were taken in order to provide the company with a clear path for sustained growth and profitability.”

MySpace was acquired in 2005 by News Corp for $580m. The company has not been performing that well with strict competition coming from Facebook, which currently has more than half a billion users. MySpace users are on the decline. The website’s users are estimated to be in the tens of millions.

Rumors about possible layoffs were ignited last November when an official of News Corp revealed during an interview that the social networking site was making losses that were “unsustainable.”

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