MySpace is planning to cut around half of its staff worldwide to make the social network more attractive to potential buyers, according to media reports.
The social network has been struggling to return to profitability after experiencing falls in traffic and advertising revenues, despite recently revamping the website recently to focus on music, games and social entertainment.
The Financial Times reported that the number of employees, currently 1,100, at the News Corp-owned company would be reduced to around 500, with one MySpace employee revealing that some people had already been given their marching orders. Those affected by the job cuts are expected to be told today.
A MySpace source reportedly told the Financial Times: “The cuts seem to go against everything we’ve been trying to do. The only reason seems to be to make it more attractive to a buyer.”
The company has international offices in the UK, Germany and Australia, and also operates offices with partners. All are expected to be hit by the cuts. The Daily Mail claimed that “dozens” would be affected in the London office.
A search and advertising deal with Google helped drive a rapid growth at MySpace in 2007. However, the deal, which guaranteed to pay MySpace a minimum $900 million over a three-year period for operating its search service, was reportedly renewed for much less last month.
News Corp’s chief operating officer, Chase Carey, said late last year that the losses at MySpace were “not acceptable or sustainable”. He also told Reuters that the media company was open to a merger or sale of MySpace.
The latest round of cuts follows a jobs cull last June, where MySpace announced it would trim its workforce by 30 percent.
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