MySpace will lose about 30% of its staff – or 400 employees – in an attempt to revive the company with a start-up culture. The lay-off exercise will leave it with about 1 000 workers.
“Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company," says Owen Van Natta, chief executive of MySpace.
"I understand 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.”
Rupert Murdoch's News Corporation bought MySpace, then the leading social networking site, for $580-million in 2005.
It is believed the company's performance has fallen short of expectations, although it is probably still profitable.