MySpace Employees Prepared for Massive Layoffs
The MySpace ship is sinking fast, and it's estimated that about half of the employees who haven't already abandoned it will be set adrift in the next few days. Parent company News Corp. is selling the social networking company -- that it paid $580 million for in 2005 -- to the highest bidder. It should bring an estimated $20 million to $30 million, according to AllThingsD, although bidding seems to be heating up, and the final price could be higher.
News Corp. reportedly wants the financial fiasco off its books for 2012, and is expected to close the deal by Thursday, June 30, when its fiscal year ends. News Corp. is expected to cut at least half of the MySpace staff in order to make for a leaner, meaner, more valuable deal. That would bring the staff of around 500 down to about 250.
The sale and corresponding layoffs have been pending for some time, and it makes you wonder why those 400 employees stuck it out for so long. After all, they've been fully aware that their jobs could be toast any minute now.
It's standard operating procedure to offer some of the more valuable employees bonuses of varying degrees to stay on through certain rough periods. After all, the sale price would plummet even further if everyone jumped ship and there was no one left to run it. Others might have opted to stay on as long as possible in order to be vested with parent company News Corp., which is on firm financial footing even if MySpace isn't.
Still others remain on the MySpace payroll simply because they haven't been able to find a better gig yet -- and many are actively looking. Sources say that very liberal, unspoken policies are being observed that allow current employees to take time off to look for other opportunities and go on interviews. Some are hardly even bothering to show up for work at all, according to one source who reports an office full of empty work stations.
Those are the employees who likely will be cut in the next few days and, knowing this, they've done their best to be prepared.
There are worse ways to go. Companies rise and fall, regardless of the economy. At least the employees at MySpace had plenty of advance warning.
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