MySpace Layoffs: 30% Down ... More To Come?
June 16, 2009 at 4:02 PM (PT)
The owners of MYSPACE have acknowledged that it has substantially trimmed its work force to adjust to the leaner times. According to BETANEWS, MYSPACE has cut its staff by approximately 30% -- and some analysts expect more cuts in the future.
MYSPACE parent company NEWS CORP. Chief Digital Officer JONATHAN MILLER admitted, "MYSPACE grew too big considering the realities of today's marketplace. 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 [CEO] OWEN [VAN NATTA] and his team."
It also quotes a statement from VAN NATTA to the staff: "These decisions are difficult for everyone, but especially for our friends and colleagues who contributed to MYSPACE's success and are directly affected by the changes. Through no fault of theirs our company's size became unsustainable. The future success of MYSPACE is dependent upon us operating as a nimble and entrepreneurial company with the adaptive mentality of a start-up."
MYSPACE reportedly has cut its staff from a little over 1,400 to around 1,000, "But as late as this morning, analysts had been quoted as saying the once dominant social network could use a 50% headcount reduction," BETANEWS reports. "Last week, THE INSIDER's NICHOLAS CARLSON cited a source close to MYSPACE as saying that layoff number could have been, and perhaps should be, higher: 'If you can't run that site with 750 people, you don't know how to run a business.'"