Just a week ago, MySpace announced it was cutting over a third of its workforce in America. Is it feeling the pressure from the darlings of social media like Facebook and Twitter or is it just securing its future by tying up loose ends and streamlining its business. Today, it has been announced that MySpace will cut another approximately 300 jobs, although details are still unclear as to where they will be.
That will leave MySpace with a workforce of approximately 1150, which is a drop of 40% from where they were two weeks ago. It is thought that they will concentrate their work on major hubs in London, Berlin and Sydney.
At the forefront of the social media craze, MySpace was created in 2003 as a means for everyday people and celebrities alike to connect and network on a social basis. Suddenly everyone could have their own little corner of the internet, sharing likes and dislikes, their news and views, and to date MySpace is reported to have over 125 million members worldwide. The current economic climate is no doubt part of the reason why MySpace are slashing its workforce, and indeed the total number of employees it will be left with will be more in line with Facebook.
It is rumoured that MySpace has seen a revenue decrease from its advertising income; although they don’t release figures it is thought their advertising revenue was in the region of £360 million last year and that figure is expected to fall considerably this year as it struggles to keep up its member figures up with the likes of Facebook and others.