Social networking site MySpace has neither confirmed nor
denied reports that it is preparing for a massive round of
layoffs.
MySpace could be planning to lay off as many as 500 of its 1,600
employees in an attempt to cut costs and stay ahead of rival
Facebook, according to
US media reports.
"It is no secret that we are looking for ways to improve our
products, increase the value of our digital assets and enhance the
overall financial strength of the company," MySpace said.
The Los Angeles Times last week reported that MySpace owners,
News Corp's Fox Interactive Media, had cancelled a plan to move to
new offices in Playa Vista, California.
The company had committed to a 12-year, $350m lease, but said it
was cancelling the move because of financial difficulties.
News Corp's $580m purchase of MySpace in 2005 was considered by
analysts to be a brilliant move by Murdoch to enhance the media
conglomerate's digital portfolio, according to
Reuters.
Since then, advertising revenue has dropped and Facebook and
Twitter have surpassed MySpace in popularity.