Today In Music: MySpace’s entertainment focus to lead to job cuts. Tomorrow perhaps?

January 11, 2011

We’d previously heard that MySpace is on course to cut jobs soon and AllThingsD today put that number at around 550 to 600 jobs and promises the announcement will be coming tomorrow.

The way one person familiar with the company’s thinking puts it, MySpace will be restructuring to realign its staff better with its new focus as a social entertainment site targeting Generation Y. It would also give it an opportunity to resolve various legacy issues.  Being a social entertainment site would probably be an easier path than as a social networking site on a hiding to nothing versus the all mighty Facebook but there are probably still questions about how it will make its money beyond advertising. MySpace despite its troubles still remains a key venue for promoting established bands and thousands of aspiring musicians.

The other story from AllThingsD is that News Corp, as we’ve reported,  is also being considered for sale but ATD (which is also owned by News Corp) points out that the parent company is shopping MySpace primarily to private equity buyers though Yahoo is also being considered.

Currently, no talks are happening at News Corp with outsiders on this but it’s a very fluid situation which could change very rapidly once the ‘realignment’ has happened.

It seemed only a few years ago MySpace was the new hot thing on the block but times change rapidly in social media. Below is a pic of News Corp chief Rupert Murdoch and MySpace founder Chris De Wolfe in happier times in 2007.MySpaceDeWolfeMurdoch(Photo: Reuters)

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