MySpace Plans Further Layoffs, To Cut 300 Jobs, FACEBOOK take notice!!!!

Discussion in 'Wall St. News' started by S2007S, Jun 25, 2009.

  1. S2007S


    Remember when Myspace was king of social networking, fast forward just a year or 2 and now they have totally fallen behind probably to never see a number 1 position in social networking ever again. Facebook should take notice and understand that no one is ever on top forever. If facebook was smart they would sell themselves for $500M right now to the likes of yahoo or MSFT, maybe even newscorp could sweep them up now. They will be lucky to see any value in the company over the next decade.

    MySpace Plans Further Layoffs, To Cut 300 Jobs

    By: Reuters | 23 Jun 2009 | 03:09 PM ET

    MySpace, the social networking website owned by Rupert Murdoch's News Corp, said Tuesday it plans to cut about two-thirds of its international workforce and close at least four of its offices outside the United States.


    The proposed restructuring plan would reduce MySpace's international staff to about 150 people from 450, the company said in a statement.

    The planned cuts come on top of MySpace's announcement last week that it was reducing its U.S. staff by about 30 percent to 1,000 people, saying its staffing levels were "bloated" and hadhurt its ability to be efficient and nimble.

    Roughly half of MySpace's total user base comes from outside the United States. Rival Facebook's worldwide user base is more than double that of MySpace, according to market researcher comScore.

    "As we conducted our review of the company, it was clear that internationally, just as in the U.S., MySpace's staffing had become too big and cumbersome to be sustainable in current market conditions," MySpace Chief Executive Owen Van Natta said in a statement.

    News Corp [NWS 10.38 0.09 (+0.87%) ] appointed Van Natta, formerly Facebook's chief operating officer, in April to replace MySpace co-founder Chris DeWolfe.

    Under the proposed plan, MySpace would place its existing offices in Argentina, Brazil, Canada, France, India, Italy, Mexico, Russia, Sweden and Spain under review for possible restructuring.

    Upon completion, London, Berlin and Sydney would become primary regional hubs for MySpace's international operations.

    MySpace China, a locally owned, operated and managed company, and MySpace's joint venture in Japan will not be affected by the proposed plan, the company said.

    MySpace, which currently has 15 international offices, declined to comment on specific staffing levels in each region.