MySpace makes Big Cuts in Workforce | Is Facebook to Blame?

Huge layoffs at MySpace

Owen Van Natta

This week, social networking giant MySpace eliminated 30 percent of its workforce. Who knew the once-biggest, most well-known and first “major” social networking site would fall victim to the economy?

Perhaps it doesn’t have anything to do with the economy. Maybe the company really did just want to return to a “startup culture” and “restore an environment of innovation,” like MySpace executive Owen Van Natta told the New York Times. Or maybe it was something else.

Facebook is in your face

Facebook crept up on MySpace a bit, I think. It started off only allowing college students to join. Then it allowed high schoolers. Ever since it opened the floodgates to a “come one, come all” guest list, there’s no doubt it has overtaken a huge share of the social networking market. Though facebook can be used for marketing things like online payday loans, it is mostly a quick, easy way to connect with and keep up with friends, acquaintances and business contacts.

For a while, it seemed everyone had a facebook account anda MySpace account. As applications and features and news feeds made facebook a downright addiction for most users, MySpace lost its luster for many. It just doesn’t have the slick design, speedy application downloads and overall classiness that facebook seems to exude. ... click here to read the rest of the article titled "MySpace makes Big Cuts in Workforce | Is Facebook to Blame?"