MySpace will fire more than half of its employees.

MySpace plans to fire from 550 to 600 employees on Tuesday. This writes All Things Digital, citing sources familiar with the question.

For some time, rumors about layoffs in MySpace appeared quite often, but now it is inevitable as the company is restructured. News Corp. plans to sell it and is even discussing this issue with Yahoo, according to ATD.

Having once been the most popular social network, in the last couple of years, MySpace has been steadily losing users, and recently gave way to Twitter on traffic. A few months ago, MySpace underwent an impressive redesign, and the network is still very popular with bands and music lovers. However, whether a new direction for a company that focuses on social entertainment — primarily music, TV shows, actors, and games — will help get new fans, is still unknown.
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If the new layoffs report is accurate, this will not be the first major restructuring for MySpace. In June 2009, the company reduced its staff by 30%, leaving a thousand employees.