The New Myspace Is Already Laying Off 5% Of Its Workforce

Andreas Rentz/Getty ImagesJustin Timberlake

Less than a year ago Myspace gave itself a big reboot and became a hub for musicians and artists. But it looks like that reboot has hit some snags.

The company is laying off 5% of its workforce, it confirmed to Natalie Jarvey at the L.A. Business Journal.

Myspace did not say how many employees this affects but we know it has 284 employees on LinkedIn.

The site, which is backed by singer Justin Timberlake, was relaunched in January. In June it embarked on a $20 million television ad campaign.

And it looked like the makeover was working. In October, it said it hit 36 million users, up from 24 million prior to the relaunch, and traffic monitoring site Compete.com validated that claim.

But looks like profits are still lagging. Chief Operating Officer Chris Vanderhook gave the Business Journal this statement:

"We're implementing changes at Myspace to support continued innovation and growth by streamlining operations to achieve profitability. We appreciate our team's contributions to Myspace over the years, and are offering outplacement services and severance packages to assist impacted employees."

We've reached out to Myspace for additional comment.