Myspace looks set to slash 1000-strong workforce by as much as 600 workers.
Company CEO Mike Jones is expected to announce the job losses later today, in what will be the biggest shake-up for the company in its 8 year history.
Since being bought by News Corporation for $580 million in 2005, MySpace has floundered in the social networking stakes having been unable to match the growth of Facebook. The company also lost over $100 million in the first quarter of last year.
It is anticipated that the international departments will be hit the hardest.
“There is not much hope left for the international offices. A few staff will probably remain, but essentially, everybody at MySpace is expecting the international operation to be closed down. MySpace isn't making money and News Corporation needs to cut more costs dramatically,” a source close to MySpace told The Telegraph.
The cuts follow a major scaling back for the company last year, when Myspace let 400 of its staff go.
Myspace has been largely unable to recapture the success of its heyday when it boasted 100 million subscribers. The social network also failed to capitalise on a revamped site design last year, and instead lost half of its users.