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MySpace More Layoffs and Reflecting on What Went Wrong

MySpace More Layoffs and Reflecting on What Went Wrong

Last July, Inside the Webb reported on new changes coming to MySpace in an effort to streamline the overall design of the social networking giant. As reported at the time, the changes were long overdue, however overhauling such a large organization was no easy task. The once reigning king of the social networking world has suffered in recent years and failed to keep up with the Facebook phenomenon.

Techcrunch reported only a few hours ago that the MySpace has cut 47 percent of staff (nearly 500 employees). According to the article, CEO Mike Jones said that the cuts were necessary to “provide the company with a clear path for sustained growth and profitability.” MySpace has been on a decline for several years and has lost millions of their once faithful members. Their redesign attempt last year (internally known as Futura) was a major change for the company but it looks like it may not have been enough.

So where did MySpace go wrong? Only a few years ago it was the number one social network and one of the most popular sites among teenagers and younger adults. Its flexibility meant that anyone could effectively sign up and customize their own part of the web with many options including the ability to connect with other MySpace users. Unfortunately this came with an arguable lack of moderation that soon led to problems of increasing signups by spammers and people promoting porn. According to an article reported at .eduGuru in late 2009,

MySpace is like the wild wild west or Las Vegas of social media, dirty and ghetto.

In 2005 MySpace was acquired by News Corp for $580 million. News Corp came in with an underlying focus on generating profits, rather than concentrating on growing and improving MySpace. MySpace maintained a strong profit for a long time, however while News Corp continued to push for more advertising, the social network started to look like a huge compilation of unorganized Internet ads. This unfortunately lead to more members signing on less frequently and eventually not at all. According to an article by Intelligent Spectator arguing why Facebook is succeeding where MySpace failed, by May of 2010, My Space had lost 109 million users (down 13%) from its previous year.

MySpace was once the world’s largest social network and while it still maintains popularity, it is fighting to stay relevant in the social networking arena. While the social network will unlikely disappear overnight, it does seem more likely that over time MySpace will eventually fade away and share the fate of many other large Internet success stories of the past, that grew and burned out too quickly.

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7 Comments

  1. Noba Dee

    “provide the company with a clear path for sustained growth and profitability.”

    Interpreted in human tongue: “the company is failing; therefore, I need to toss everything overboard to slow it’s inevitable plummet to the depths of the abyss and to buy time to save my own ass”.

    Reply
  2. Sara Walsh

    “MySpace is like the wild wild west or Las Vegas of social media, dirty and ghetto.” <—— this is so great! Only ghetto people looking for booty calls use myspace.

    Reply
  3. Lea Harris

    The only MySpace is good for is the music. They should just develop that part of the site better.

    Reply
  4. Thomas Ford

    MySpace failed. Facebook FTW. Much classier.

    Reply
  5. JP Adams

    Check out a new social/business/dating network site called MyUpscaleDaddy. The site will be fully moderated and requires a photo to be uploaded. It is not easy to combat the spammers and other morons out there who try to take over but the best plan of defense seems to be human moderation – no matter how big a site becomes.
    JP Adams.

    Reply
  6. bobby

    Myspace is just flatout crap now, sorry for the myspace fans, but its like that. Facebook is the king now, although google tried succeeding with google+ it didn’t work, as i’m not impressed by it at all.

    Best regards,

    Reply
  7. kathy

    nice collection like it

    Reply

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