The MySpace social networking site is preparing to reduce its workforce by up to half within a month, according to internet reports.
As part of the site's restructuring, 1,100 employees could be made redundant, reported the Wall Street Journal, citing a person familiar with the matter.
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MySpace launched a new version of its website in October last year, focused on social entertainment in an attempt to regain share in the social network market.
MySpace had more than 42% of the social network market in 2007, but has now been surpassed by newcomers such as Facebook and Twitter. According to SocialTwist, MySpace now accounts for just 15% of traffic.
MySpace has dented the financial performance of its parent company News Corp. In the company's Q1 financials, News Corp reported a $156m loss from its "other" segment, which covers its digital media businesses.
This is $30m worse than last year. "The decline was primarily due to lower contributions from the Digital Media Group, principally stemming from lower search and advertising revenues at MySpace," News Corp said.
Yahoo was also expected to cut up to 700 jobs before the end of 2010, which represents about 5% of the company's workforce.