MySpace cutting up to 600 staff, might sell to Yahoo

21st January, 2011 by adina
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The rumored job cuts at MySpace have been confirmed by the company. The music and social network announced that 500 jobs, meaning 47 percent of the total 1,100 jobs would be cut, according to contacts from AllThingsD. Initial rumors said that the situation was even more dramatic as 550 to 600 jobs were believed to be cut.

These reductions have probably been planned not only to make possible to turn around the site which was losing money but also to trim it down and this way make it more desirable for being bought. The parent company of MySpace, News Corp, has been thinking selling it off to Yahoo, but it is not known how veridical the prospects are for a deal like this.

MySpace is known to come after a few years of suffering as Facebook has taken it over gradually. The decline was credited to various factors but disorganized user pages as well as a certain lack of features beyond music were the main disadvantages. At one point, it tried to compete with Apple’s iTunes as well as with others by heavily focusing on paid song downloads. It did not work however and conducted to increased buying through iTunes and Amazon MP3 instead.

There were no comments made by MySpace about the above claims as being accurate or not.


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