14 DAY TRIAL // MySpace recently changed its profile from social network to social entertainment hub, redesigned its logo and revamped its website – all in an attempt to regain some, if not all, of its former glory. However, rumors claim that these changes were not as effective as expected, and that as much as 50 percent of the company's staff will be let go.
Apparently, the fact that prompted this rumor was that most of MySpace personnel was allowed to stay home during the holidays in order to cut down expenses.
The idea to lay off half of their 1,100 employees is meant to act as another method to reduce costs considering traffic and revenue have decreased despite all efforts.
In all fairness, chances are that giving a week off to their staff during the holidays was actually a kind act from the management, rather than a way to reduce costs – but this does not mean that the California-based company does not have great financial difficulties.
Furthermore, it is believed that MySpace might also be looking for a possible buyer that might save the company from its downward slope.
Things officially started to look grim for the company in June 2009 when 300 jobs were cut, several offices were shut down and its international Managing Director from its European operations left.
After refocusing its profile to become a social entertainment hub, MySpace also announced integration with the most popular social service of the moment, Facebook.
This collaboration was seen by many as admitting defeat in front of their main competitor, and was considered as a desperate attempt to restore their position as an important player in social networking.
Since MySpace has not yet confirmed nor denied plans to lay off 50 percent of its staff, it might be still waiting to see how their visitors react to the new functionality and design of the website.
All that we can do is wait and see if the management team can make the right calls and make the service an attractive landing page for Internet users all over the world.