MySpace workforce to undergo major downsizing

A couple of days ago we told you about the rather dismal future that seems to be facing MySpace, the social networking site which is seeing falling amounts of users and revenue despite a recent revamp in a bid to renew interest.

We also mentioned how up to half of the workforce of around 1,100 could lose their jobs and this has been reiterated by Jenny Williams over on Computer Weekly, sourced from the Wall Street Journal, who also gives us more information about the fate of MySpace. Back in 2007 it seems that MySpace had over 42% of the social networking market but Facebook and Twitter have both long since sailed past MySpace and now it remains with only 15% of the market, according to Social Twist.

The fortunes of MySpace have also impacted upon NewsCorp, its parent company, which reported a $156 million loss from the part of its business which covers digital media. That’s a $30 million bigger loss than last year and it seems that MySpace is not the only company to undergo job cuts as Yahoo was also recently reported to be cutting around 5% of its workforce.

Some more of the background to this story can be found in an article by Douglas McIntyre over on Daily Finance which points out the irony about the news of MySpace coming only one day after Facebook received a huge $500 million investment, much of it from Goldman Sachs. What do you think about the fortunes of MySpace? Why not send us your comments about this.