MySpace Lays Off Almost 30%

An excerpt from the release:

MYSPACE REDUCES STAFF BY NEARLY 30%

Return to Start-Up Culture a Focus for Company Moving Forward

LOS ANGELES—June 16, 2009—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%. This restructuring plan crosses all U.S. 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 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.”

3 Responses to “MySpace Lays Off Almost 30%”

  1. earlpearl Says:

    The reality of cutting staffing by 30% is a scary reality vis a vis the concept of an established social media venue being unable to support its staffing.

    Big problems for myspace as a growth animal.

  2. Greg Sterling Says:

    Being spun as a return to startup culture but it signifies a pretty big problem clearly.

  3. earlpearl Says:

    I agree, Greg. 30% cut in staffing can be spun in a lot of ways…but that clearly spells T R O U B L E

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