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MySpace Will Lay Off A Third Of Its Workforce

Ailing social networking platform MySpace is expected to lay off 150 of its employees on Wednesday to continue cutting costs, it has been claimed.

Citing an inside source, TechCrunch (opens in new tab)reported that the website, which is owned by News Corp., will fire 150 of its 400 staff members on Wednesday, more than a third of its workforce.

Moreover, the company plans to put another 150 of its employees in a ‘transition plan’, under which the employees will be laid off but will be able to work and earn income for a short period while they look for new jobs.

The company had cut its staff by 47 percent at the start of the year and continues to shed its workforce in a bid to make it more attractive to a buyer. TechCrunch sources also revealed that the MySpace acquisition deal will be announced this Friday, but it is still not known who has actually acquired MySpace.

Some of the rumored entities interested in buying MySpace include BuzzMedia, LivingSocial and Activision CEO Bobby Kotick.

Rupert Murdoch's News Corp. bought the social networking platform for $580 million and has said it will not sell for less than $100 million, still a significant loss. The company has been for sale for the past six months.