MySpace confirmed to lay off 47% of its staff, which will make approx. 500 people lose their job the coming days. Especially the regional offices in Germany, AUstria and the UK will be cancelled and replaced by ’strategic local partnerships’ (Musically) with companies to handle advertising sales and content in those respective countries. MySpace will maintain an international ‘core’ team to manage partners.
“Today’s tough but necessary changes were taken in order to provide the company with a clear path for sustained growth and profitability,” said CEO Mike Jones in a statement. “These changes were purely driven by issues related to our legacy business and in no way reflect the performance of the new Myspace.”
Jones wants MySpace’s strategy to shift from social networking towards social entertainment, music discovering tools and sharing content.
“While it’s still early days, the new Myspace is trending positively and the good news is we have already seen an uptick in returning and new users,” said Jones. 3.3 million new profiles have been created since MySpace’s relaunch, as well as 134,000 of its new Topic Pages.
“There has also been a boost in viral activities, with over 10 million social actions and 90 million “follows” within the Hubs and Topics categories,” said Jones.
The recent cuts are no surprise and are widely perceived as a way not just to reposition MySpace for its new social entertainment focus, but also to make the company more appealing to potential purchasers.