MySpace to Cut 300 Workers

 

Chief Executive Owen Van Natta said, “As we conducted our review of the company, it was clear that internationally, just as in the U.S., MySpace’s (News - Alert) staffing had become too big and cumbersome to be sustainable in current market conditions.”

 

Of course, news of job losses and closings are coming less and less as a surprise as companies fight to compete in a tough economic climate and more competitive marketplace. Yet social networking sites, which are seeing more and more activity with the rise of smartphones and applications that leverage the Web 2.0, have held strong for months.

 

The latest plans are part of what is being called a plan to “restructure” for MySpace’s overseas operations and will include London, Berlin and Sydney as the “primary regional hubs” the AP reports.

 

The company added that its joint venture in Japan and locally owned and operated MySpace China will not be affected by this move.

 

Not only will workforce reductions help the company cut down on costs, but they’ll also help narrow its territory coverage, the AP reports.

 

Just last week, the company also confirmed rumors that it would be cutting down its U.S. workforce by about 30 percent – around 420 employees.

 

“I understand that these changes are painful for many,” Van Natta said about the announced workforce cuts in the United States. “They are also necessary for the long-term health and culture of MySpace. Our intent is to return to an environment of innovation that is centered on our user and our product.”