MySpace Laying Off More Employees
At a time when Twitter is riding a crest of popularity, it is sad to report that MySpace may have to lay off more employees. In what is being reported as a layoff of some 300 to 500 people, the social networking site is owned by Fox Interactive Media. The company purchased MySpace back in 2005, when MySpace was the darling of the Internet.
In a recent article over at TechCrunch it states that:
Contacted for comment, a Fox Interactive Media spokesperson issued the following statement:
“Like any company with new leadership, Fox Interactive Media is reviewing every aspect of our operations, performance and structure. It’s no secret that we are looking for ways to improve our products, increase the value of our digital assets, and enhance the overall financial strength of the company.”
Since former AOL chief Jonathan Miller took over as News Corp’s CEO Digital Media and the MySpace executive team shakeup in April, MySpace and FIM have undergone extensive measures to cut costs, including these personnel hits. FIM also just backed out of its plans to take over its new Playa Vista offices.
Why the cuts? MySpace traffic is plummeting, and revenue is going to take a huge hit when the Google deal terminates in mid 2010. MySpace already has an uphill battle on its hands as it vies to compete with Facebook, and it’s no longer going to have that very lucrative revenue stream to lean on.
In this day and age when advertising revenue are shrinking, this could spell the end of MySpace now that there is a new kid on the block called Twitter. Twitter is the new darling of the Internet since it seems that news agencies and celebrities have flocked to the new kid.
What do you think? Has MySpace run out of space? Will Twitter take over and crush other networking sites?
Comments welcome.
What Do You Think?