MySpace became steadily less significant with Twitter and Facebook’s constant expansion and social-network trend setting. The website struck a major ad deal with Google recently, but that’s not enough to stabilize its descent. That’s why the possibility of layoffs concerning up to 50% of the 1,100 has been raised by multiple sources.

“While the decision of what cuts to make to its employee base have not been made yet, nearly the entire Myspace staff was given the last week of December off from work to save money.

Sources stressed that management was still working out the details of more drastic cost-cutting measures that owner News Corp. has been wanting from Myspace, as its revenues and traffic have declined.”

The future of MySpace is very uncertain, which is why News Corp may even consider selling this superstar of the past. MySpace however, is not the only one dealing with layoffs. Yahoo employees have also seen round after round of layoffs which we covered here, and there’s of course Digg, whose case we also covered here.

Going back to MySpace, the once social-network has gone through a complete overhaul and became a media and entertainment hub roughly 6 weeks ago. The revamped website is also trying to expand its turf towards the mobile market. It updated its apps and mobile website some time ago following an earlier milestone, when Twitter officially surpassed it in terms of traffic, which we covered here.