MySpace to lay off 30 percent of staff

Reuters on Yahoo ^ | 6/16/09 | Robert MacMillan

[NormsRevenge]

NEW YORK (Reuters) – MySpace, the social network owned by Rupert Murdoch's News Corp, said it will cut 30 percent of its staff to lower costs as it struggles to stay popular in the face of rising competition.

MySpace will be left with about 1,000 employees, it said in a statement released on Tuesday. The company declined to say how many people work at the service, but the percentage suggests that about 400 people will lose their jobs.

The cuts, which were presaged in several blog reports in recent weeks, are the biggest move so far by new management at the social network and an attempt, it said, to return the service to a "start-up culture."

"Simply put, our staffing levels were bloated and hindered by our ability to be an efficient and nimble team-oriented company," MySpace's new chief executive, Owen Van Natta, said in the statement.

"I understand that these changes are painful for many. They are also necessary for the long-term health and culture of MySpace."

News Corp named Van Natta as CEO in April. He replaced Chris DeWolfe, one of MySpace's co-founders.

News Corp's new digital media chief, Jonathan Miller, said MySpace "grew too big considering the realities of today's marketplace."

The layoffs will happen across MySpace's operations, though many of its employees are based in Los Angeles. A company spokeswoman declined to say when employees will learn that they are losing their jobs.

[NormsRevenge]

must be the ripple effect of all that stimulus.

[Minn]

I’ve never been on or directly seen either service. But it is remarkable how quickly MySpace went from dominant to forgotten.

[Perdogg]

And Myspace suffered through the issues that Facebook was able to avoid, like 14 year old girls posting nude pictures and sex offenders stalking kids. It is easy and less expensive to learn from other people’s mistakes.

[AnotherUnixGeek]

In other words, Facebook is kicking their butt.

The thing about social networks on the Web is that they work like large social networks everywhere else - trendiness and exclusivity are essential. As soon as everyone starts showing up, it's time to move on to Facebook...then Twitter...etc. Don't know what that says about the business of building social networks, except to cash out early.

[Walmartian]

Walmartian just sent you a colon cookie. Would you like to send one back?

[svcw]

MySpace is so like last year.

[NoGrayZone]

"Facebook is easier to use, easier to navigate and easier on the eyes and everything else."

AND Facebook has Mafia Wars!

[neocon1984]

Who needs this sh##? Get a life.

Contribute to Free Republic, financially and in content. It’s good exercise for your mind.

[Glenn]

There is some kid sitting in his room coding up the next best thing.

It keeps the vulture capitalists busy and happy.

[Proud_USA_Republican]

myspace is like sooooooooooooo 2007.

[Extremely Extreme Extremist]

Who cares? You want to put your mug on these pos outlets, go right ahead. I couldn’t care less.

Who forced you to click on the thread?

Facebook is great for reuniting with old high school buddies and such.