Ailing social network says around 500 staff will be laid off, including those in the U.K., Germany, and Australia.
Ailing social network MySpace said it is laying off 500 staff, or 47 percent of its workforce. It will include cuts to its international operations in the U.K., Germany, and Australia.
The company said it will enter into local partnerships in those markets to handle ad sales and content strategy, overseen by a "core" international team. In the U.K. that partnership will be News. Corp sibling .Fox Networks, while arrangements are being finalized in the other two markets.
The company gave no indication as to what portion of cuts would come from the United States versus international offices.
In a prepared statement, MySpace CEO Mike Jones said, "Today’s tough but necessary changes were taken in order to provide the company with a clear path for sustained growth and profitability. These changes were purely driven by issues related to our legacy business, and in no way reflect the performance of the new product."
MySpace parent News Corp. re-launched the site late last year with a renewed focus on entertainment and music content, but executives have suggested a sale or closure of the service is being considered as it continues to miss revenue targets. In November 2010, News Corp. COO Chase Carey said the site's turnaround was being "judged in quarters, not in years."
Despite that fact, Jones said MySpace is "committed to rebuilding with an entrepreneurial culture and an emphasis on technical innovation," and that the site has "seen an uptick in returning and new users" since its re-launch.
The cuts could help attract potential buyers, who would have lower overhead and limited international affairs to inherit.
Learn Digital Marketing Insights From Leading Brands!
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda, or register and attend one of the best ClickZ events yet!
Jack Marshall was a staff writer and stats editor for ClickZ News from 2007 until August 2011.
Hong Kong, October 21-22
London, November 13-14
San Francisco, November 13-14
London, November 18-19
Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.
5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.
October 23, 2014
1:00pm ET/10:00am PT