BEVERLY HILLS, CA (Hypebot) – As part of a plan to restructure into a "more innovative, efficient, and entrepreneurial business", MySpace announced today that it will reduce its staff by nearly 30% or about 420 people.. This restructuring plan crosses all U.S. divisions lowers the number of domestic staff to 1,000 employees. The cuts had been rumored for weeks and comes just after Facebook surpassed MySpace for the first time in May visitors and page views both in the US and worldwide.
“Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company,” said MySpace Chief Executive Officer Owen Van Natta.”
I understand that these changes are painful for many. They are also necessary for the long-term health and culture of MySpace. Our intent is to return to an environment of innovation that is centered on our user and our product.”
“MySpace grew too big considering the realities of today’s marketplace,” said Jonathan Miller, News Corporation’s CEO of Digital Media and Chief Digital Officer. "I believe this restructuring will help MySpace operate much more effectively both structurally and financially moving forward. I am confident in MySpace's next phase under the leadership of Owen and his team.”
The larger Fox Interactive Group which includes MySpace, Photobucket, Fox Sports Interactive, IGN, Rotten Tomatoes, AskMen, the Fox Interactive Media Audience Network and the Digital Publishing Group is also trimming staff though the specifics are less clear than at MySpace.
“We are examining the operating structure of Fox Interactive Media and its role as a corporate umbrella for a number of our digital businesses. In conjunction with the MySpace staff cuts this week, we reduced our corporate FIM staff and also assigned certain positions to specific business units. These moves will allow the business leaders at each of our sites to operate in a more streamlined environment and have more direct responsibility for their teams,” said an official statement.