MySpace is slashing staff by 30 per cent, saying the company plans a “return to a start-up culture” to hatch its future plans.
In a move confirmed this afternoon (June 16), and as part of a plan to restructure itself into a more “innovative, efficient, and entrepreneurial business”, MySpace announced today that it will reduce its staff by nearly 30 per cent. This restructuring plan crosses all US divisions of the company and lowers the total number of domestic staff at MySpace to 1,000 employees.
“Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company,” said MySpace CEO 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.”
This news emerges as Facebook usage in May eclipsed that of MySpace for the first time. Facebook attracted 70.278 million unique visitors in the states, compared to MySpace’s 70.237 million, according to ComScore.