MySpace CEO Announces Significant Layoffs – TechnoBuffalo


Update from previous post: MySpace Laying Off Over Half Of Its Staff Tomorrow

A “significant organizational restructuring that will result in a 47 percent staff reduction across all divisions globally and impact about 500 employees” was announced earlier Tuesday by MySpace’s CEO Mike Jones.  Rumors were circulating that the company owned by News Corp. would be undergoing major layoffs before the search begins on a new buyer.

“Today’s tough but necessary changes were taken in order to provide the company with a clear path for sustained growth and profitability,” said the CEO of MySpace. “These changes were purely driven by issues related to our legacy business, and in no way reflect the performance of the new product.”

Mike Jones also announced to the public that several partnerships for MySpace will undergo in the United Kingdom, Australia and Germany to handle its advertising-end, continuing to hint that layoffs will be particularly heavier overseas.  He finished by saying that his company “will retain a core, dedicated international team to work with partners in order to ensure users, content partners and advertisers continue to be served.”

MySpace was often over-focusing on becoming a universal social network rather than appealing to its users and after a massive redesign, the heavier focus was put on pop culture and multimedia enhancement.  MySpace use to have the popularity and hype similar to Facebook and Twitter, however MySpace has really lost ground and speed to Facebook and the likes of over the past few years.

Earlier reports regarding the redesign announced that “Since the worldwide rollout of the new MySpace, there have been more than 3.3 million new profiles created,” and that “we have already seen a rise of four percent in mobile users just between November to December, now totaling over 22 million.”

News Corp. did not reveal rumored plans to sell MySpace to other buyers.

Repost from TechnoBuffalo.com


About Winston Sih

Winston is currently the Digital Media Producer-Correspondent for City television stations across Canada, producing content for the network’s digital properties including Breakfast Television, Cityline, CityNews and Entertainment City. He is also an on-air correspondent for the network’s in-house productions where he can be seen reporting on the latest social news and trends.