Horrible news comes from AllThingsD’s NetworkEffect blog Friday morning, as rumors of massive layoffs sullied New Year’s Eve for a social networking pioneer. Myspace may soon find itself full of open space following the dismissal of as much as half of its staff, according to the report. Owned by News Corp., Myspace currently employs 1,100 people, most of whom are located in the U.S. No decisions have been made at this point, and the majority of employees have reportedly been given this past week off in an effort to save money. News Corp. is said to be pushing hard for “drastic cost-cutting measures” in light of the site’s tumbling traffic and revenue. In an effort to rekindle interest in the service, Myspace launched a major redesign about six weeks ago that features an increased focus on entertainment.