Social Media

MySpace Feels the Crunch of Social Networks Competition

Losing your job is never good, no matter what you do for a living. But when your job hinges on the vicarious whims of other people, it can be especially hard to get the “pink slip.” The staff at the MySpace social networking site may be experiencing those feelings today as many of them were given the notice of possible lay-offs. Of the 1,000 employees that the company has on payroll, over 50% of them are expected to be laid off, although no definite date has been named for this action. Also, some of the company’s employees did not even work this entire week as the company decided to close its doors and cease major business operations in an effort to save money and to further cut costs.

Social networking is a huge profit-maker in the industry as companies look for creative, compelling and innovative ways to engage and entice customers. It may be slightly true that in the world of social networking, your success is directly proportionate on your popularity. While this may not be 100% of MySpace, their popularity has taken an indirect hit in the social networking game.

When MySpace first became a popular site, they were associated more with music, artists in the industry and connecting these all together. The site evolved into more networking features, but still held music as its core of attracting visitors. Now, music can be found on just about any major social networking site.

Being overshadowed by the social network forerunner, Facebook, MySpace has experienced its diminishing web presence. Other sites that are steadily growing and gaining in popularity are also giving MySpace issues to deal with. The microblogging platform at Twitter, the growth of the group coupon site at Groupon and the feature-rich location based services at Foursquare all have seemed to crowd out MySpace as they gain the attention and consumer dollars from savvy social network users.