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Showing posts with label online social networking trends. Show all posts
Showing posts with label online social networking trends. Show all posts

June 14, 2009

500 MySpace Employees to be layed off

MySpace layoffs could near 500 "It looks like Myspace is the latest casualty amidst increasing slowdown and lack of revenue model.

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."