US staff cut 30 percent by Myspace
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Onetime social-networking pioneer MySpace has declare that it has cut its head count by 30 percent in what the company calls a “return to start-up culture.” Well, this is a nice way to lay it.
MySpace would be laying off half its employees in a move that had delayed its relocation to a bigger office space in the Los Angeles area. Reports had circulated MySpace’s full-time U.S. employee schedule will be down to 1,000 people, which means somewhere just 500 jobs were cut.
The layoffs are evenly distributed across all U.S. division of the company said by MySpace. Since MySpace also control a number of offices overseas, it’s not yet clear how they were affected and representatives decline remark as to whether international offices would be affected down the road.
Van Natta, the former chief operating officer at Facebook, was appointed as CEO of MySpace late in April after a short period at the head of start-up Project Playlist. Former CEO Chris DeWolfe had stepped down earlier that month, reportedly at the request of Jonathan Miller, the new digital czar at News Corp. Executive shakeups at MySpace had been happening periodically for nearly a year at that point.
MySpace’s new executive lineup gives it solid entertainment street cred: Van Natta was joined by former MTV digital exec Jason Hirschhorn and former AOLer Michael Jones. Late last year, another MTV digital-media executive, Courtney Holt, joined MySpace as the head of its new MySpace Music division.
Launching MySpace Music, which focuses on free streaming music supported by advertising, was a return to the company’s roots: once a hub for indie band promotion and society, MySpace had grown huge before Facebook began to catch up to it in international and then U.S. traffic. Partnerships with the likes of Google and a prominent endorsement of the OpenSocial developer initiative didn’t help it regain traction as a networking destination.
In March MySpace Music’s traffic was “huge.” But record label executives–who are partners in the MySpace Music joint venture–reported dissatisfaction with the revenue it was generating.
We personally, don’t know when this slowdown will stop and people will get their jobs, however job less trend is increasing and specially in US.
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