While most newspapers shuttering blame the internet for their lack of consumers, even top social network sites like MySpace seem to be suffering in this economic climate. Three top MySpace executives are leaving the company, reports CNET. Speculations about this departure—which includes COO Amit Kapur—indicate trouble within MySpace. Last July the company reduced its staff by 5 percent, but maintained that these layoffs were performance driven and that the company intended on hiring 300 new employees to replace those let go. This rehire has yet to occur.
Overall traffic at MySpace has been declining, allowing rival site Facebook to take the lead worldwide, though MySpace is still the number one social networking site in the United States. An internal memo from CEO Chris DeWolfe accentuated the health of MySpace, though ad revenue declines have affected this social networking site.
So while online networks maybe generating more pageviews, ad revenues are still down across the board and no company seems inured to this economic crisis.