AllThingsD's Liz Gannes reporting that trouble in MySpace land. The social networking site turned social entertainment hub--is in the midst of planning that could soon result in significant layoffs of its staff. The number could be as much as 50% of the 1,100 employees at Myspace, largely based in the U.S., but also in international locations.
The layoffs are also part of a larger rethink about the future of the Beverly Hills, Calif.-based company, which has had many difficulties in recent years, including several leadership upheavals and a talent drain, as well as stagnant growth.
She repeats, that management was still working out the details of more drastic cost-cutting measures that owner News Corp. has been wanting from Myspace, as its revenues and traffic have declined.
She also discusses the possibility that Facebook game-maker Zynga as a potential acquirer of Myspace. While the two companies had discussed closer ties in the past--back when Zynga COO Owen Van Natta was still CEO of Myspace--those talks went nowhere.
Several sources said a private equity buyer for Myspace is now the likeliest outcome if the online property is sold.
Myspace declined to comment on layoffs or acquisition talks.