Are Social Networks Sinking?

"The air seems to be coming out of the Web 2.0 bubble, squeezed by the economic downturn and the absence of many solid short-term business plans.

"Dire market conditions have forced virtually all social-networking firms to scale back. In October, Hi5, the third most popular social-networking site, announced that it would cut between 10 percent and 15 percent of its staff. And in November, the business-focused networking sites LinkedIn and Jive said that they would slash their work forces by 10 percent and 40 percent, respectively."

Full report at abc News...