Social networking site MySpace has layed off nearly half of its workforce as a part of the company’s restructuring drive, which was done in order to cut costs. The layoffs will affect about 500 of the 1,100 employees that MySpace employs worldwide.

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The layoffs will take place globally with only a handful of “core” team members managing the international partnerships. With Facebook becoming the dominant social networking site, MySpace has been redesigning itself as an entertainment hub for youngsters with focus on music and other forms of media. MySpace chief executive Mike Jones, in a statement said “Today's tough but necessary changes were taken in order to provide the company with a clear path for sustained growth and profitability. These changes were purely driven by issues related to our legacy business, and in no way reflect the performance of the new product”.

While the new redesign has brought a surge of new visitors in the form of 3.3 million new profiles as well as a jump in its mobile users, it is still not enough as News Corp., the company who bought MySpace in 2005 for $580 million has reported an operating loss of $156 million in the last quarter.

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