MySpace layoffs could near 500

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pinkslips_small.jpgADOTAS — It looks like the fading social network will be taking the hit within News Corp.

With online advertising revenues in the U.S., which was at $5.5 billion for the first quarter of 2009, seing a decline of 5 percent over the same period in 2008 and MySpace According to a prediction by eMarketer, US social network ad spending will fall 3% to $1.14 billion in 2009, from $1.18 billion in 2008. Spending grew an estimated 33% in 2008 and 129% in 2007.

The major problem seems to be MySpace. While it has been cash cow for News Corp., the brand has lost its shine, notably resulting in the recent leadership upheaval. EMarketer says that US ad spending on MySpace will reach $495 million this year, down from the estimated $585 million in 2008.

And now Techcrunch says layoffs will likely affect between 300 and 500 employees, although its unclear if that’s an overall number for Fox Interactive Media, MySpace makes up around 1600 of the 2900 employees in FIM. Last summer MySpace let go of 5% of its staff, and as many as 45 employees were laid off last month.

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5 COMMENTS

  1. This is why it is important for Social Media Managers to be sure to work on multiple networks. You just never know what the next big thing is , or the next one to tank.

  2. MySpace over hired and some went in the wrong direction because of internal struggles, as we’ve seen by the departures of many of its top brass.

    I hope they don’t fire the wrong people since MySpace will need its top talent to make a comeback.

  3. Let’s hope that Jeff Berman and his set of ‘militant’ inexperienced honchos will be first in line to leave. They have undoubtedly turned the Sales team into a three ring circus, unable to ‘jump thru hoops’ and being significantly behind in numbers and slashing people’s ideas!

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