AfterDawn: News

MySpace will fire 150 employees this week

Multiple sources are claiming that MySpace will fire 150 of its remaining 400 employees this week, as part of the deal to sell off the company.

One source even believes a few of the employees are eagerly awaiting their pink slips as "I think the management owes the employees severance because of the terrible management mistakes they presided over."



In January, the company laid off 550 employees in the U.S. and internationally, in an effort to cut costs and look more attractive to a buyer.

Since early 2009, the company has laid off 1500 employees.

The two companies looking to buy MySpace for $20-$30 million are Golden Gate Capital, a private equity firm, and Specific Media, an ad network.

Rupert Murdoch's News Corp. originally purchased the company for $580 million in 2005, back when Facebook was still in its infancy but traffic has begun to crater, with the service seeing a drop in traffic of 14 percent per month in 2011.

Written by: Andre Yoskowitz @ 28 Jun 2011 13:03

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• 3 comments

• hikaricor

  That's what you get for changing your entire site and trying to mimic facebook. Originally both myspace and facebook had their own unique charm and in a way a specific userbase, but as myspace started to turn into something else more and more people simply migrated to facebook and the recent changes for the rest have been the last straw.

  28.6.2011 13:37 #1

• KillerBug

  They want to make facebook look more appealing to investors...how does firing everyone do that? At the rate they are going, all that will be left to sell is the domain name and some servers.
  

  http://killerbug666.wordpress.com/

  29.6.2011 03:25 #2

• buxtahuda

  Originally posted by KillerBug: They want to make facebook look more appealing to investors...how does firing everyone do that? At the rate they are going, all that will be left to sell is the domain name and some servers. *No Offense - Random comment and personal opinion backed by nothing at all* But those are about the only worthwhile parts? Unless they keep what codejunkies are left and get rid of the entire management side of things...
  

  ~*Livin' Electronicallly*~

  29.6.2011 12:17 #3