The entertainment social network site MySpace has announced it will cut almost 50 percent of its staff, as it struggles to compete with giant Facebook.
According to the official statement by MySpace’s CEO Mike Jones, 47 per cent of the staff will be reduced across all divisions globally. That will impact about 500 employees.
“MySpace Inc will be entering into strategic local partnerships in the UK, Germany and Australia to manage advertising sales and content,” according to the statement, published by the Guardian.
In the UK, MySpace will enter into a strategic alliance with Fox Networks, with whom they have successfully partnered internationally. Details about Australia and Germany are currently being finalized.
Last year MySpace relaunched its website, with a new focus on gen Y entertainment social networking. Since the change, more than 3.3 million new profiles have been created, MySpace announced.
“We also introduced Topic Pages, which connect users to entertainment-focused content from news sites and blogs all over the web.”
Over 134,000 topic pages have been created since the introduction of the new MySpace.
In 2005 the media giant Rupert Murdoch bought MySpace for $580 million, but the company struggled to gain profitability.
Murdoch’s News Corporation is now pondering the sale of the social network site, but is yet to decide whether to sell, merge or do a spinoff of the website.
Mike Jones, MySpace’s chief executive, said the job cuts were “tough but necessary”, reported BBC.
“These changes were purely driven by issues related to our legacy business, and in no way reflect the performance of the new product,” he said in the report.
According to the official statement by MySpace’s CEO Mike Jones, 47 per cent of the staff will be reduced across all divisions globally. That will impact about 500 employees.
“MySpace Inc will be entering into strategic local partnerships in the UK, Germany and Australia to manage advertising sales and content,” according to the statement, published by the Guardian.
In the UK, MySpace will enter into a strategic alliance with Fox Networks, with whom they have successfully partnered internationally. Details about Australia and Germany are currently being finalized.
Last year MySpace relaunched its website, with a new focus on gen Y entertainment social networking. Since the change, more than 3.3 million new profiles have been created, MySpace announced.
“We also introduced Topic Pages, which connect users to entertainment-focused content from news sites and blogs all over the web.”
Over 134,000 topic pages have been created since the introduction of the new MySpace.
In 2005 the media giant Rupert Murdoch bought MySpace for $580 million, but the company struggled to gain profitability.
Murdoch’s News Corporation is now pondering the sale of the social network site, but is yet to decide whether to sell, merge or do a spinoff of the website.
Mike Jones, MySpace’s chief executive, said the job cuts were “tough but necessary”, reported BBC.
“These changes were purely driven by issues related to our legacy business, and in no way reflect the performance of the new product,” he said in the report.
