MySpace Lays Off Almost Half Its Staff
January 11, 2011 at 3:17 PM (PT)
Confirming an ALL ACCESS story posted late last year (NET NEWS, 12/31), MYSPACE CEO MIKE JONES admitted that a "significant organizational restructuring ... will result in a 47% staff reduction across all divisions globally and impact about 500 employees," reports CNETNEWS.COM.
"Today's tough but necessary changes were taken in order to provide the company with a clear path for sustained growth and profitability," JONES continued. "These changes were purely driven by issues related to our legacy business, and in no way reflect the performance of the new product."
JONES also cited advertising sales and content partnerships for MYSPACE in the U.K., AUSTRALIA, and GERMANY, which would invariably lead t even greater layoffs, bit asserted that MYSPACE "will retain a core, dedicated international team to work with partners in order to ensure users, content partners and advertisers continue to be served."
There was no mention of the other popular rumor floated last year, that NEWS CORP. wants to sell of MYSPACE entirely.