MySpace slashes nearly half of staff

The News Corp.-owned social-networking site will lay off 500 employees

MySpace is laying off 500 employees, or about 47 per cent of its global staff, as part of a restructuring by the once-leading, now struggling social-networking site.

The reorganization includes striking up partnerships in the U.K., Germany and Australia for managing advertising sales and content, MySpace said Tuesday.

MySpace CEO Mike Jones tried to put a somewhat positive spin on the news, saying in a statement that user engagement has improved since the relaunch of the site in October as an entertainment hub for young people.

"Today's tough but necessary changes were taken in order to provide the company with a clear path for sustained growth and profitability. These changes were purely driven by issues related to our legacy business, and in no way reflect the performance of the new product," he said in the statement.

Jones also forecasts that MySpace will now be a more agile and flexible organization that can accelerate product development and foster a culture of entrepreneurship and innovation.

Still, MySpace, which went through a major round of layoffs in mid-2009, faces an uncertain future.

As Facebook has become the world's dominant social network, speeding past MySpace in late 2008, MySpace officials have had to scramble to keep the site relevant.

It remains to be seen if its redesign as an entertainment hub for members of the so-called Generation Y will be successful and give MySpace a new lease on life.

People already have many options for entertainment content on the Web, as music, TV shows and movies become widely available on the Web via many sites and services like Apple's iTunes, Netflix, Amazon and Hulu.

MySpace officials have been talking about re-inventing the site for a while. That was the message from Jones' predecessor Owen Van Natta, a former Facebook executive who resigned as MySpace CEO in February 2010, after less than a year in the job.

MySpace is owned by News Corp., which bought it for US$580 million in mid-2005, when the site ruled the emerging social-networking market and had great potential to be a gold mine of advertising revenue.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags social mediainternetbusiness issuessocial networkinglayoffsInternet-based applications and servicesMySpace.com

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Juan Carlos Perez

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Bitdefender 2019

This Holiday Season, protect yourself and your loved ones with the best. Buy now for Holiday Savings!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?