MySpace, the once popular social networking site is suffering from big advertising losses due to a declining user base. The latest news is that they are paying off 500 people in a restructuring change. Yahoo are already showing an interest in the business plan.

Robert Murdoch, the chief honcho of News Corp was always positive about the success of MySpace saying years ago that it was ‘not just looking up friends', hinting at Facebook's ‘limitations'.

Sadly, years later the decline in the userbase and advertising revenues mean that the business is going to have to lay off around 47% of the workforce in a restructuring plan. Yahoo has already made their intentions clear, but they aren't offering any press briefings yet. MySpace Chief Executive Mike Jones said “The new organizational structure will enable us to move more nimbly, develop products more quickly and attain more flexibility on the financial side.”

It shows that becoming a success in the social networking market is not as easy as it sounds and other businesses such as AOL and Yahoo have long since been placed behind leaders such as Twitter and Facebook.

Statistics show that the userbase of Facebook spend on average 80 minutes a week updated their status and photos, playing games and checking on their contacts. This compares to 21 minutes for those on MySpace.

KitGuru says: Social Networking is a tough industry and Facebook really seem to have the market covered.

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