MySpace job cuts due tomorrow amid selloff talk

MySpace's rumored dramatic job cuts should happen tomorrow, tips supported on Monday. Between 550 to 600 of the 1,100 workers at the music and social network site could lose their jobs on Tuesday. January 11 was a hard deadline for determining the cuts, according to AllThingsD contacts.

The reductions have supposedly been planned not only to help turn around the money-losing site but also to pare it down and make it a more viable sell-off target. MySpace's parent company News Corp. has been considering selling the company off to Yahoo, although it's not known how serious the prospects are for such a deal.

MySpace has been suffering for the past few years as Facebook has gradually taken over the social networking space. The factors behind the decline have varied but have usually centered around relatively disorganized user pages and a relative lack of features beyond music. At one point, the tried to compete with iTunes and others by focusing heavily on paid song downloads and ad-supported music streams, but this largely didn't pan out and led to an emphasis on buying through Amazon MP3 and iTunes instead.

MySpace hasn't commented on whether any of the claims are accurate.

By Electronista Staff