Myspace facing up to 50% workforce axe tip insiders

Myspace execs are reportedly considering axing up to 50-percent of the struggling social network's workforce, amid drastic cost-cutting measures intended to counter diminishing revenues and traffic growth. According to NetworkEffect's sources, as many as 550 employees could face redundancy should Myspace owner News Corp decide to go ahead with the plan; other strategies include selling on the social network, with both online game company Zynga and private equity buyers both tipped.

The leaks will come as little comfort to Myspace staff, the majority of which were put on mandatory leave in December in an attempt to save money. News Corp has been blunt about Myspace needing to shape up or face the chop; COO Chase Carey commented in November that "current losses are not acceptable or sustainable" and that the parent company "judge in quarters, not in years." Myspace has declined to comment on the speculation.