Myspace Expecting A Bloody Tuesday for Half Their Staff
It will be a Bloody Tuesday for 550-600 of the little more than 1,000 employees at Myspace. Those cuts, rumored since December, are part of the site's attempt to find a viable niche in the online space.
With dwindling success, it mutated from a social networking site to an entertainment portal. Likely, after the cuts are made, parent company News Corp. will step up its efforts to sell it, reports Liz Gannes on AllThingsDigital.com.
News Corp., headed by Rupert Murdoch, has been pitching Myspace to private-equity firms. When stripped of the costs of maintaining so much staff, Myspace might become more attractive to potential buyers. Gannes mentions the possibility that it might be pitched to Yahoo, which itself cut 600 jobs last month.
Given the high-pace metabolism and sometimes short lifespan of players in the online space, it's often a Darwinian struggle to determine which players will survive and thrive and which will become obsolete.