Severe Layoffs in the Cards for MySpace as Rumors Circulate That Site Will Be Sold LA Times

After dropping millions of monthly visitors, News Corp.'s MySpace is poised to lay off about half of its staff, prompting speculation that the site may be prepared for a sale, reports the Los Angeles Times' Company Town blog.

The site will cut about half of its 1,100 employees in mid-January, the story says. A MySpace representative declined to comment.

The social-media service has tried to regain some of its popularity with consumers 13 to 35 years old as a place where they could find new TV shows, games and music. But the article points out that MySpace's attempts to redraw users hasn't stopped consumers from leaving, with monthly visitors dropping by 3.7 million to 54 million in November.

News Corp. bought MySpace in 2005 for $580 million, at a time when the social network was booming in popularity, the article points out.