While layoff rumors abound in this economic climate, there is one company that has been hit particularly hard—MySpace. While they are a household name in social networking, MySpace can’t seem to justify being second best to Facebook—the more rapidly growing and popular of the two networking powerhouses. And the severity of the potential layoffs at MySpace makes that very clear.

The company, after all, has been the center of many speculations regarding their staff. One source used the word “massive” to describe the as of yet unproven layoffs, while a different source actually went so far as to put a number on that generic (albeit frightening) word. This alternate source placed the layoffs at anywhere between 300 and 500 employees.

Many believe these talks and the subsequent actions will help appease the already concerned shareholders. Despite a 2.39% jump in unique visitors during April and a report that puts them ahead of Facebook for videos, MySpace has been steadily losing the battle of social media dominance. And apparently, in today’s climate, that’s simply not good enough to justify a full staff.

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