- Image via CrunchBase
The emergence of Facebook has not come without consequences. Facebook’s recent success appears to have posed a great bit of challenge to other social networking Websites which have seen their members gradually lured away. Perhaps one of the most affected social networks in terms of membership loss is MySpace. The once popular site has announced job cuts in a bid to turnaround its dwindling fortunes. Thus, the Website will be cutting 500 job positions i.e. 47% of its employees, which translates to almost half of its global workforce. The gradual shift in power to Facebook reminds me of a friend who a couple of years ago told of how he switched alliances to Facebook so that his friends could see his latest photos as most of them had migrated from Flickr.
This trend represents a shift which has seen MySpace attempt to reinvent itself as an entertainment Website, as it finds itself in the shadows of Facebook. Staff members were notified of their job losses, weeks after the parent company, Rupert Murdoch’s News Corporation (which bought MySpace in a deal that cost $580m (£372m) in 2005), put the social networking site on notice to ‘shape up or potentially face auction. However, according to MySpace’s chief executive, Mark Jones, the job cuts were ‘tough but necessary’ in what is generally seen as an effort to put the Website back on the path towards growth and profitability.
Talking Point
Why is Facebook so popular?
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Turtle Beach Headsets
January 12, 2011 at 8:34 pm
Wow, that is so many jobs being lost, this reminds me of the movie about Wal-Mart and how it is really destroying jobs, businesses, and our economy because of the extremely low wages they pay, the fact they dont offer insurance, and because they tell their employees to go on welfare.
Dr Natura
January 13, 2011 at 1:15 am
It’s really sad how the might have fallen. But in reality, I always wondered why MySpace needed so many employees, the traffic keeps dropping like a rock, and I doubt there are many advertisers that want to advertise to poor college students and teenagers
website designer
January 13, 2011 at 5:31 am
Hmm its new for me.
Wholesale Suppliers
January 13, 2011 at 9:40 am
this seems to be a big loss, Facebook damaged myspace to badly that the has had to cut 50% positions from their company, personally i dont think it they can come up again with the same fame and revenue but the element of hope is always there.
Richard Pastor
February 4, 2011 at 5:56 pm
I feel bad for the employees, but I think it is safe to say that the age of MySpace is coming to a swift end. The site simply cannot compete with the likes of Facebook. I am not sure what they could do at this point, but it seems to me, from a business perspective, they could have done more int he last few years to update their operations to keep up with the times.