MySpace slashes 30 percent of jobs

MySpace slashes 30 percent of jobs

MySpace's revenues aren't quite what they should be, and the company is looking to trim 30 percent of its US staff to compensate.

While, according to some, the global economy is starting to show the first signs of tentative recovery, the slowdown in spending is still finding new victims – most recently MySpace.

The social networking giant – currently owned by media conglomerate News Corp. – will be losing around thirty percent of its US workforce over the next few weeks, according to an article published over on CNet. The publication also quoted a source as saying that “senior management” was spared any job losses, with the cuts being made from further down the corporate ladder.

Although the company has only offered comment on its US-based headcount reductions, there are rumours afoot that further layoffs may occur elsewhere via consolidation of multiple offices in Europe.

Despite the massive loss, MySpace CEO Owen Van Natta attempted to put a brave spin on the news with the statement that previous staffing levels were “bloated and hindered our ability to be an efficient and nimble team-oriented company.” While recognising that the job losses would be “painful for many,” Natta claimed that they were “necessary for the long-term health and culture of MySpace.

Natta believes that dropping its staffing levels will aid the company's future growth, and that it represents an opportunity to “return to an environment of innovation that is centred on our user and our product.” He explained in his memo to staff that "our company’s size became unsustainable. The future success of MySpace is dependent upon us operating as a nimble and entrepreneurial company with the adaptive mentality of a start-up... We need to become a more innovative company."

The social networking market is increasingly dominated by Facebook and Twitter; competing sites need a unique offering in order to stand out from the crowd, and whether MySpace has enough that potential remains to be seen. Does MySpace still have enough to offer a crowded marketplace, or are the job losses an early sign of its inevitable decline? Share your thoughts over in the forums.


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ch424 17th June 2009, 10:49 Quote
Other than band pages, I've never seen a use for MySpace, so this doesn't really come as a surprise.
Skiddywinks 17th June 2009, 11:42 Quote
Facebook is much better, in my opinion.

Also, it doesn't consist of nothing more than emo and scene kids using stupid camera angles in their photos.
PT88 17th June 2009, 11:49 Quote
lol, Facebook has demolished MySpace, but i agree with ch424, MySpace is really only for bands these days
lewchenko 17th June 2009, 14:11 Quote
Im not sure why facebook and twitter are suddenly the kings of social networking, but they must be doing something right. The nintendo approach perhaps (ie. overly simplistic to capture the masses), whereas MySpace seemed much more configurable - almost like a web site/page builder rolled up with all the other social elements.

Plus people can have facebook/twitter accounts just to keep up with social events and 'friend' news etc, whereas MySpace seemed to want 'more' from you in order to get the most from it.

All in all, MySpace is now like Yahoo in the search business... stagnant and posting lower growth results than its peers...
[PUNK] crompers 17th June 2009, 14:21 Quote
facebook is just a nicer app to use, tbh i think myspace feels cheap nowadays. at the end of the day this is "social" networking if your friends are all using one site you're unlikely to use another
sui_winbolo 17th June 2009, 20:42 Quote
Myspace is a great way to meet new people outside your social circle. It's great to meet people from other states and become friends with them. You can't really do that with Facebook. It's also a great way to discover new music and bands. Can't do that with Facebook.

Twitter is just a little abomination of the two. :p
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