MySpace will cut 300 jobs overseas
LOS ANGELES - The social-networking site MySpace plans to cut 300 jobs, or two-thirds of its overseas workforce, in an effort to rein in costs and focus on countries where it has many users and better business opportunities.
Yesterday’s announcement came a week after the News Corp. unit said it would cut 420 jobs in the United States, or nearly 30 percent of its domestic workforce. Combined, the cuts will reduce MySpace’s employee base by nearly 40 percent, to about 1,150.
“Our goal to tap into as many international markets as possible drove us to create too many offices around the globe, and with them came inefficiencies,’’ chief executive Owen Van Natta, a former executive at rival Facebook, said in a memo.
Van Natta started in his new job in April with a mandate to revitalize the site, which has seen advertising revenue fall and user growth stagnate. Critics have said its features have become outdated, even as it ramped up a music service with the major recording labels last fall.
MySpace said it would close at least four of its 15 overseas offices, while focusing on London, Berlin, and Sydney. MySpace has 34 versions in 28 countries.