While once the dominant player in the social networking scene, Myspace has fallen to the wayside in the last few years. Today, Paid Content reports that MySpace is cutting 500 employees, which represents 47% of their workforce. The social networking site, which made the announcement this morning remains popular with bands and musicians but has failed to gain the traction it once had with consumers.

Just last year, the company cut 30% of staff, meaning the company has lost almost a thousand employees since June 2009. CEO Mike Jones commented:

Myspace is implementing a significant organizational restructuring that will result in a 47 percent staff reduction across all divisions globally and impact about 500 employees. With our recent relaunch as an entertainment destination for Gen Y, we introduced a much tighter focus, a significantly streamlined product and an updated technology platform. Today's tough but necessary changes were taken in order to provide the company with a clear path for sustained growth and profitability.

The new Myspace is trending positively and the good news is we have already seen an uptick in returning and new users. Since the worldwide rollout of the new Myspace, there have been more than 3.3 million new Profiles created.