Official: MySpace Cuts 500, 47% Of Staff
In an official statement today, MySpace CEO Mike Jones confirmed that about 500 employees will be cut globally. “With our recent relaunch as an entertainment destination for Gen Y, we introduced a much tighter focus, a significantly streamlined product and an updated technology platform,” according to Jones. The cuts come at the same time that parent NewsCorp has been publicly searching for a buyer for MySpace.
“Today’s tough but necessary changes were taken in order to provide the company with a clear path for sustained growth and profitability,” Jones said in the statement adding that the cuts should not reflect on the performance of MySpace's new design and focus. “The new organizational structure will enable us to move more nimbly, develop products more quickly, and attain more flexibility on the financial side.”