MySpace Layoffs Indicative of Social Media Market?

-MySpace Logo-While unconfirmed, it’s being reported by several sources that MySpace is getting ready to undergo hefty layoffs to its company which currently employs around 2900 people. The large social network, part of Fox Interactive Media, has been struggling to maintain its dominance from a platform perspective, losing ground to other networks like Facebook in many areas of the world.

From a business standpoint we’ve seen MySpace advertising decreasing along with its traffic, and the company is also poised to lose its revenue-generating deal with Google some time next year. Some speculate that the diversified media approach MySpace has taken has hurt the company overall, and should be sold off as separate entities.

With several executive shakeups including the loss of co-founder and President Tom Anderson and CEO Chris DeWolfe, the future of MySpace is one big question mark. Should MySpace undergo layoffs throughout its company, which could be as little as 100 or as many as 500 employees, it wouldn’t be the first web-based startup to cut staff in the past 8-12 months. Having already undergone a 5% staff cut earlier this year, MySpace has already been trying to curb any massive changes within the company. See here for more thoughts on what MySpace could consider for the long-term.