MySpace Axes 420 Jobs

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It’s no secret that MySpace has been losing the social networking site against Facebook. In an attempt to slash costs and regain some momentum, yesterday it axed 420 jobs, or one-third of its workforce.

Last week the speculation was that the cuts would be around the world, but instead, at least so far, they’re in the US. MySpace is owned by Rupert Murdoch’s News Corp.. In a statement, chief executive Owen Van Natta said:

"Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company. I understand that these changes are painful for many. They are also necessary for the long-term health and culture of MySpace. Our intent is to return to an environment of innovation that is centered on our user and our product."

The cuts will bring MySpace down to about 1,000 employees in the US, although it’s possible that jobs will also go in Europe, with office in France, Italy and Spain likely to close.

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