International Cuts Coming To MySpace
June 23, 2009 at 6:01 AM (PT)
Social-networking website MYSPACE said TUESDAY that it intends to slash its international work force by two-thirds to about 150 employees as it strives for greater efficiency under new leadership, reports THE WALL STREET JOURNAL. "The move follows last week's announcement that the company would cut its U.S. work force by nearly 30% to about 1,000.
"Analysts have long predicted cuts at MYSPACE, which was recently eclipsed by FACEBOOK as the networking site with the most worldwide users. MYSPACE remains ahead of FACEBOOK in the U.S. by number of unique monthly visitors.
"After the restructuring, LONDON, BERLIN and SYDNEY would be the regional hubs for MYSPACE's international offices. Offices in ARGENTINA, BRAZIL, CANADA, FRANCE, INDIA, ITALY, MEXICO, RUSSIA, SPAIN and SWEDEN are under review for possible restructuring. MYSPACE CHINA, which is locally owned and operated, and MYSPACE's joint venture in JAPAN, wouldn't be affected by the plan.
"As we conducted our review of the company, it was clear that internationally, just as in the U.S., MYSPACE's staffing had become too big and cumbersome to be sustainable in current market conditions," MYSPACE CEO OWEN VAN NATTA said TUESDAY.
"NEWS CORP. reported an $89 million loss in the division that includes MYSPACE for the most recent quarter, partially due to higher costs related to a music venture and new features on the site."