More Cuts in Social Media

The trend continues, the economy continues it’s downward spiral, could this be the social media bubble that the online community has been expecting for years?

Just yesterday Hi5, a social network amongst of myriad of offerings, laid off as many as 15% of its staff. While it’s been labeled as restructuring, it’s no doubt that hard economic times are forcing companies across the board to tighten their budgets.

Advertisers are feeling the pinch too. It’s a trickle down effect and because companies are being cautious, advertising is taking a nose dive as well. Adbrite, one of the top 5 online advertising networks, is laying off more than 40% of it’s current staff. This is a huge number, and will send many seeking other ventures, but the market is going to make it tough for them to find fertile ground to grow.

As I sit here reading article after article, I think this is an opportunity for social media to grow, and perhaps force individuals to think even further outside the box. Shakeup after shakeup is sure to make investors and supporters wary, but there is a light at the end of the tunnel, of that I am sure.

Update:
Just now on Twitter it has been reported by @samhouston that Pandora is releasing approximately 14% of its workforce. This has been confirmed by TechCrunch here.