Myspace Cuts Jobs as it Restructures

Myspace Cuts Jobs

Not that long ago, Myspace was at the top of the social network scene with forecast revenues of $1 billion. But now, the site owned by media mogul Rupert Murdoch’s News Corp. is getting ready to cut their workforce nearly in half. This is the second major cut in jobs since 420 people were cut, as the company restructured, in the summer of 2009.

The job cuts come as the result of a steep decline in advertising revenues and a loss in the company’s user base. The company is attempting to redesign itself and focus on building a loyal base with users too young to get a page on rival Facebook.

Experts agree that it seemed to be a lack of direction and a failure to innovate that eventually led to the demise of Myspace. Once the company was purchased it was too slow to change and react to competition. The focus of the new face of Myspace is on becoming something of an entertainment destination. Users will access the portal to share, view, and comment on various media such as movies, music, games and television.