MySpace Cuts Staff in Half

Has MySpace reached the end of its rope? The pioneering social-networking site announced Tuesday that it is laying off almost half of its staff in attempt to establish a "much tighter focus" within the company. The layoffs, which will affect approximately 500 people, are linked to the site's redesign in October—a strategic move which Chief Executive Mike Jones portrayed as an indicator of the company's positive future. According to Jones, the layoffs were needed to cut costs: "Today's tough but necessary changes were taken in order to provide the company with a clear path for sustained growth and profitability." He also said MySpace is "trending positively.” With a total of 22 million users, the company has seen a rise of 4 percent in mobile users between November and December.