Sources tell TechCrunch that MySpace is poised for "massive" layoffs that will likely affect between 300 and 500 employees either at MySpace alone or at Fox Interactive Media, the company's parent.
MySpace currently makes up around 1600 of the 2900 employees at FIM. Last summer, the social networking giant let 5% of its staff go and as many as 45 employees were laid off last month, but "these
cuts go deeper," says TC's Jason Kincaid.
Which means that the company's legal team will need to submit paperwork in compliance with California's WARN act, which requires large
companies to give advance notice of major layoffs. Kincaid says the California Employment Development Department has yet to receive the filing.
In a statement, MySpace said the
following: "Like any company with new leadership, Fox Interactive Media is reviewing every aspect of our operations, performance and structure. It's no secret that we are looking for ways to improve
our products, increase the value of our digital assets, and enhance the overall financial strength of the company."
Apart from the new leadership, which has seen former AOL chief
Jonathan Miller take over as News Corp.'s CEO of Digital Media, MySpace is faced with plummeting traffic and the prospect of a lucrative search deal with Google expiring next year.
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