MySpace lays off 30 percent of staff as Facebook becomes No. 1

Just after Facebook blows by MySpace to take over the number one spot in the social networking world, MySpace announces it is laying off 30 percent of its workforce. That's 420 workers being cut.

It seems Facebook's handwriting is all over MySpace's wall. MySpace has time to re-cast the site, hold its audience and possibly grow. It's difficult, though, to get in the way of momentum.

That's exactly what MySpace is trying to do since hiring former Facebook COO Owen Van Natta as its new CEO in April, replacing co-founder Chris DeWolfe as CEO. DailyFinance received a copy of the memo Van Natta sent to his MySpace employees asking for their "patience" with MySpace's workforce cuts.