More Blood Letting at MySpace

MySpace is cutting nearly 30 percent of its work force about 420 people. They felt bloated an ineffective as the MySpace staff grew to large. This will bring the MySpace staffing level more in line with FaceBook. Just two months in as CEO Owen Van Natta is making the tough decisions. The news out yesterday that the latest comScore showed FaceBook has caught MySpace in monthly U.S. visitors for the first time both had about 70 million users. The MySpace staff will be around 1,000 compared to the FaceBook staff of 850. MySpace is turning more of a profit base on last year with MySpace generated about $605 million in global advertising revenue last year, compared with $250 million for FaceBook. We had rumors that this coming as far back as a month ago. Then it went quiet of course the estimated number was much less and it wound up being 12% higher. The good news is it seems that Newscorp is serious about keeping MySpace and finding away to turn it around. The problem is there is not enough time in the day to keep up with to much social media. MySpace does let users change the look of their pages more than FaceBook but changes are time consuming and internet users are spread thin there might not be enough room for MySpace to grow on the user level. The corporate and entertainment arena might be the only real place for growth.

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