MySpace is looking to return to its online upstart roots — and the first step is to shave 400 people from its workforce.
By reducing staff nearly 30 percent, MySpace hopes to restructure into a more innovative, efficient and entrepreneurial business. The plan crosses all U.S. divisions of the company and cuts the total number of domestic MySpace staff to 1,000.
“Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company,” said MySpace CEO 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.”
Is Facebook to Blame?
The move to lay off staff comes as Rupert Murdoch, the media mogul who owns MySpace parent News Corp., looks for ways to revive his digital business assets. News Corp. acquired MySpace in 2005 for $580 million at the beginning of the social-networking craze. At the time, it was the leading social-media portal, but Facebook and Twitter have taken some of the shine off the brand and the company isn’t meeting its financial goals.
“MySpace grew too big, considering the realities of today’s marketplace,” said Jonathan Miller, News Corp.’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.”
Van Natta took the CEO reins from Chris DeWolfe in April. DeWolfe, who was responsible for growing MySpace from a seven-person firm to a leader in social networking, continues to serve on the board of MySpace China and is a strategic adviser to the company, but News…