MySpace to cut global workforce by 47 percent
by Steven Mostyn - Jan 12 2011, 09:53
Perhaps not the best logo, given the loss of staff. Image: MySpace.
It would appear MySpace’s recent transformation from distant second-best social network to media-centric social hub hasn’t been quite the success the News Corp-owned company was hoping for.
More pointedly, MySpace has this week announced that 500 employees are to lose their jobs, a figure that equates to around 47 percent of the network’s total international workforce.
“Today’s tough but necessary changes were taken in order to provide the company with a clear path for sustained growth and profitability,” confirmed MySpace chief executive Mike Jones in an official statement.
In an effort to disassociate the job cuts from the October service expansion, Jones said the restructuring measures “were purely driven by issues related to our legacy business, and in no way reflect the performance of the new product.”
In support of that denial, Jones revealed that more than 3.3 million user profiles have been created since the ‘new’ version of MySpace went global.
He also said MySpace saw a four percent rise in mobile users (to 22 million) between the months of November and December.
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