Last I heard social networking was the next ‘big thing’ to hit the Internet. Every day someone is developing a new social networking application, plugin, or twitter aggregator.
So what happened at My Space?
MySpace is laying off nearly a third of its U.S. staff, or about 420 employees, as the once highflying Internet business tries to rein in costs and contend with fast-growing rival Facebook Inc.
The cuts will leave the social-networking site with about 1,000 employees in the U.S. MySpace declined to say whether it is also cutting back its international operations, in which the company has invested heavily in recent years. Facebook says it employs more than 850 people world-wide.
The move comes about six weeks after News Corp., which owns MySpace and The Wall Street Journal, replaced the site’s executive team, appointing former Facebook executive Owen Van Natta as chief executive.
Since then, the new leaders have found MySpace in worse shape than expected, according to people familiar with the situation. For example, traffic to the site has been falling much more quickly than believed.[...] Source: WSJ
Is social networking the next ‘bubble’ that is now deflating?
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