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A smaller 'Space

It was rumoured, it was predicted, it was reported, and now it's happening. Myspace, the once world-conquering social network, is sacking half of its staff as it scrabbles to return to profitability.

The site relaunched as 'an entertainment destination for Gen Y,' as CEO Mike Jones puts it, late last year. Rather than trying to compete with the mighty Facebook as a social network, Myspace now lets users sign in with their Facebook profiles to see extra information on the bands, films and celebrities they 'like.'

The company says that since the relaunch, 3.3 million new profiles have been made on the site, and mobile visits are up. (Given that he didn't apparently mention regular visits, I think we can guess how they're going.) Nevertheless, Myspace's ruthless owners at Rupert Murdoch's News Corp are reportedly demanding the company return to profitability sharp-ish, or face sale. And if you can't raise revenues quickly, the only way to become profitable is to slash costs, right?

'Today’s tough but necessary changes were taken in order to provide the company with a clear path for sustained growth and profitability,' Jones says. And we guess that a smaller, more focussed Myspace might have a future. But really, sacking half your people is never a good sign...

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