Is News Corp. looking to gut MySpace prior to a potential sale?
That's a natural conclusion, given various reports that have surfaced, indicating MySpace is shortly planning to dismiss anywhere between a third and a half of its 1,100 employees. According to WSJ.com, the downsizing could happen this month.
The news that MySpace layoffs are imminent was first reported last week by AllThingsD.com.
MySpace has been scrambling to reinvent itself as a social entertainment hub after Facebook has left the site in the dust in the social networking race. MySpace underwent a redesign last year and recently re-upped its search deal with Google. But MySpace's revenue has slid, leading News Corp. executives to consider other options, including selling the site.