Myspace logged 54.5 million unique visitors in November and brings in $347 million in ad revenue a year.
For a growing startup, those numbers would be amazing. But for Myspace, founded in 2003, it means the end may be near.
News Corp is planning massive layoffs at Myspace, reports The Wall Street Journal.
Between a third and half of the 1,100 employees could lose their jobs. Despite its heavy traffic and not insignificant revenues, Myspace is not profitable and its relevance is receding. It’s not News Corp Chief Operating Officer Chase Carey’s fault, though.
“Our current management did not create these losses, but they know we have to address them,” Carey said on a call with analysts in November.
Myspace did a dramatic redesign in October that made the site look cleaner, more polished and less sophomoric, and emphasized user discovery of media, celebrities and news. The response was a collective yawn from the Internet population.
Meanwhile investors are whipping themselves into a veritable frenzy over Facebook, the media are showering love upon startup darlings like Twitter and Foursquare, and users are flocking to Tumblr, Quora and other next big things.
News Corp may have to sell the struggling social media site it acquired for $580 million in 2005.
ajeffries [at] observer.com | @adrjeffries