MySpace Cuts 30% of Workforce

MySpace announced yesterday that it would cut 30 percent of its workforce. The need to layoff roughly 430 employees is allegedly due to cutting cost and matching current demand.


Recently, MySpace has seen intense competition from the emergence of both Facebook and Twitter. According to CNNMoney, time spent on the Social Media giant, MySpace, has dropped 23% this year. In 2005, when NewsCorp bought MySpace for $580M, it was the leader in Social Media, demanding roughly 73% of time spent on Social Media Networking Sites. Despite the decline in traffic, Rupert Murdoch recouped most of his initial investment with a Google $900M Search Advertising Deal which is slated to expire in 2010.

Nevertheless, as MySpace faces the difficulty of reviving its user experience to keep users returning to the site, many have to question how long the growth for these type of sites can be sustained. Rival Twitter has seen astonishing growth in 2009, but will it be the next "has-been" in 2012?

Picture: Courtesy of Francisco Anderson's WordPress Blog