Here's another sign that MySpace is on the verge of even worse times ahead. The once-popular social networking hit, which has languished of late, is gearing up to slash 25 percent of its staff, or 500 employees, TechCrunch reports.

TechCrunch cites unnamed sources in its report, but adds that the layoffs may come down at Fox Interactive Media, the parent company of MySpace. Regardless, MySpace makes up nearly half of the employees in FIM, so the site will be hammered hard one way or another.

MySpace cut 5 percent of its staff last summer, and it cut as many as 45 employees last month, but the oncoming cuts are slated to go much deeper.

The news makes sense though, considering FIM just backed out of a plan to take over new offices in Playa Vista, Calif. Even worse for the company, its deal with Google's expires in about a year.