Half of MySpace’s current staff- between 500 and 600 employees, it is believed- are expected to lose their jobs with the company tomorrow as the website’s slow death march continues.

MySpace has long been a punchline or addendum to one-liners about Facebook’s dominance of the social networking sphere. (Even a year and a half ago, MySpace was referred to as a “digital ghetto.”) A piece in the Wall Street Journal on the impending layoffs said an unnamed source indicated that the mass redundancies would be a move toward the site’s new strategy, but declined to elaborate on what kind of strategy might necessitate cutting half of MySpace’s remaining staff.

Wired speculates that the layoffs could be coming ahead of a possible sale of MySpace:

The layoffs are happening as News Corp holds on-again, off-again talks to sell MySpace to potential buyers, including private equity firms, according to NetworkEffect. Another rumor making the rounds is that Yahoo might pick up MySpace. Last week, CNBC reported that News Corp is on track to unload the social networking website by mid-2011.

MySpace has not commented on nor confirmed the rumor of tomorrow’s layoffs.

Massive MySpace layoffs expected tomorrow is a post from: The Inquisitr

Nearly 30% of MySpace staff will be unemployed by 4pm, PST today as the company lays of between 450 and 500 of it’s 1,600 or so domestic employees.

It appears that the company decided to get rid of the staff as quickly as possible, dropping the following press release and facilitating the layoffs all on the same day, taking them by surprise. Techcrunch is reporting that a mole within the company says there is extra security in the building and that managers are being given boxes, presumably to give staff to put their belongings in before they leave.

Since this situation is still developing, very little info is available right now except for the press release below:

MYSPACE REDUCES STAFF BY NEARLY 30%

Return to Start-Up Culture a Focus for Company Moving Forward

LOS ANGELES – June 16, 2009 -As part of a plan to restructure itself into a more innovative, efficient, and entrepreneurial business, MySpace announced today that it will reduce its staff by nearly 30%. This restructuring plan crosses all U.S. divisions of the company and lowers the total number of domestic staff at MySpace to 1,000 employees.

“Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company,” said MySpace Chief Executive Officer Owen Van Natta. “I understand that these changes are painful for many. They are also necessary for the long-term health and culture of MySpace. Our intent is to return to an environment of innovation that is centered on our user and our product.”

“MySpace grew too big considering the realities of today’s marketplace,” said Jonathan Miller, News Corporation’s CEO of Digital Media and Chief Digital Officer. “I believe this restructuring will help MySpace operate much more effectively both structurally and financially moving forward. I am confident in MySpace’s next phase under the leadership of Owen and his team.”

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About MySpace

MySpace is a technology company connecting people through personal expression, content, and culture. MySpace empowers its global community to experience the Internet through a social lens by integrating personal profiles, photos, videos, mobile, messaging, games, and the world’s largest music community. MySpace is a division of News Corporation. (NYSE: NWS – News, NWS.A – News; ASX:NWS – News, NWSLV – News)

[Via Techcrunch]

Massive 30% Myspace Layoffs – Heightened Security at MySpace HQ is a post from: The Inquisitr