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Myspace Facing 'Dramatic' Cuts

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MySpace facing "dramatic" cuts

San Francisco - Social networking site MySpace is set to announce a dramatic round of job cuts as it struggles to compete with the overwhelming popularity of Facebook, according to US news reports Monday.

The Wall Street Journal, which like MySpace is owned by Rupert Murdoch's News Corp, said that depending on the results of the restructuring, the parent company may put MySpace up for sale.

Financial television site CNBC.com said that News Corp was planning to sell MySpace by mid year, and that the downsizing to be announced would encompass more than half of the loss-making website's 1,100 employees.

The report came just six weeks after MySpace launched a major redesign, which aimed at transitioning it from a social networking site into an entertainment hub.

nationlogo.jpg

-- The Nation 2011-01-04

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