Home  › Social › Social Media
myspace

MySpace Lays Off 47% of Staff

  |  January 11, 2011   |  Comments

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.

 

Tags:

ClickZ Live New York Want to learn more?
Attend ClickZ Live New York March 30 - April 1. With over 15 years' experience delivering industry-leading events, ClickZ Live brings together over 60 expert speakers to offer an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!

ABOUT THE AUTHOR

Jack Marshall

Jack Marshall was a staff writer and stats editor for ClickZ News from 2007 until August 2011. 

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Social newsletters delivered right to your inbox. Subscribe today!

COMMENTS

UPCOMING EVENTS

UPCOMING TRAINING

Featured White Papers

A Buyer's Guide to Affiliate Management Software

A Buyer's Guide to Affiliate Management Software
Manage your performance marketing with the right solution. Choose a platform that will mutually empower advertisers and media partners!

Google My Business Listings Demystified

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.

Jobs

    • Website Optimizer - SEO, CRO, Analytics
      Website Optimizer - SEO, CRO, Analytics (Marcel Digital) - ChicagoMarcel Digital, an award winning interactive marketing agency established in 2003...
    • Director of Marketing
      Director of Marketing (Patron Technology) - New YorkDirector of Marketing We are seeking a Director of Marketing to manage and build our marketing...
    • Senior Interactive Producer
      Senior Interactive Producer (Ready Set Rocket) - New YorkWhat You'll Do As a member of our team, the Senior Producer reports directly to our...