Another blow for struggling MySpace: The social networking site is planning massive layoffs, and could ax between a third and a half of its employees, sources tell the Wall Street Journal. The News Corp-owned company, which employs about 1,100, is expected to announce the reductions this month. Its staff was already downsized by almost 30% over the summer, but more layoffs are needed to control costs, says an insider.
The dramatic restructuring is the latest move as MySpace attempts a makeover, positioning itself as more of a music, games, and entertainment hub. The site was recently redesigned, and a new ad deal was struck with Google—though that deal is said to be less profitable than an earlier one. Meanwhile, visitors continue to decline, down 15% in November from the prior year. Facebook, on the other hand, just snagged a $500 million investment…