MySpace sheds jobs
Troubled social networking site
MySpace is to cut two thirds of its workforce in an attempt to safeguard its future. The site, owned by Rupert Murdoch’s News Corporation, is set to shed 300 positions internationally. Four regional offices are also earmarked for closure. MySpace bases in ten different countries, including those in Argentina, France and Russia, are understood to be under threat.
It is thought that the company’s offices in London, Berlin and Sydney will be the central regional hubs for the social networking site.
Own Van Natta, the chief executive for MySpace, said that the operation had become too large, particularly in light of the harsh economic climate.
"With roughly half of MySpace's total user base coming from outside the US, maintaining productive and efficient operations in our international markets is important to users worldwide and our immediate financial strength," he said.
MySpace struggle against rivals
The site, purchased for $580 (£331) million in 2005 by News Corporation, has been struggling amid increasing competition from social networking rivals Facebook and Twitter. A study from the data firm
comScore showed MySpace’s user base dropped by 18 per cent between April 2008 and 2009; equivalent to a 1 million decline in unique users. MySpace is also set to lose nearly half of its revenue in 2010 when a current advertising deal with Google comes to an end.
The news of these global job losses comes after the company announced it is to reduce its US staff by 30 per cent earlier this month.
