The once-mighty social network is laying off half its staff. How could such a promising business turn sour so quickly?
Back when I was writing about how the leading social network somehow crashed and burned, I couldn't imagine that it would happen again. Back then, I bemoaned the fact that Friendster didn't become MySpace. Well, three and a half years later, after a blockbuster acquisition and impressive profits, it looks like MySpace has become Friendster:
MySpace CEO Mike Jones today announced a "significant organizational restructuring that will result in a 47 percent staff reduction across all divisions globally and impact about 500 employees," confirming many rumors that the News Corp.-owned social network would be going through heavy layoffs before possibly seeking a new buyer.
Even more so than in 2007, social networking looks like a winner-take-all kind of business, and the $50 billion winner looks to be Facebook. For now.