News Corporation is rumoured to be considering laying off half of MySpace's workforce, which currently totals 1,100 employees.
While there is no official word on any plans for restructuring, News Corp execs have made no secret of the fact that the company may consider selling its recently rebranded social network, should a suitable buyer make a satisfactory offer in the near future.
MySpace has been a problem
MySpace's COO Chase Carey said in no uncertain terms last month: "We've been clear that MySpace has been a problem.
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"Current losses are not acceptable or sustainable. But we know that we have to work very hard in [the] coming months to get this thing sustainable," he said, adding, "We judge in quarters, not in years."
The reports of impending layoffs come from All Things Digital, which claims to have multiple sources familiar with the matter informing them that up to 50 per cent of MySpace's 1,100 workforce could be up for the chop in early 2011.
News Corp reportedly gave MySpace employees the last week of December off work to save cash. Not the nicest of Christmas bonuses!
MySpace recently rebranded itself as an entertainment portal that users can use in conjunction with (and easily connecting to) their Facebook accounts.