MySpace to lay off 150 more staff?

28 Jun 2011

After letting 500 members of its staff go in January, MySpace is expected to lay off 150 more to make the company more attractive to a potential buyer.

According to Gawker and TechCrunch, the layoffs are expected to be announced closer to 29 June in the run up to the end of MySpace’s fiscal year.

One source suggests some employees are actually hoping to be let go.

“I think the management owes the employees severance because of the terrible management mistakes they presided over,” said Gawker’s source.

News Corp is aiming to sell the ailing social network, as it has continuously dragged down its digital media earnings. Slimming down its staff further could make it more attractive to bidders. There is speculation that Activision CEO Bobby Kotick could purchase MySpace, but the offer is still open to other potential bidders.

MySpace already cut 47pc of its staff in January to make the company more sustainable. It also redesigned itself to be a social media hub.

However, it still struggles to maintain relevance on today’s web, with social networking sites like Facebook and Twitter proving more popular among users.