MySpace cuts 30% of jobs

MySpace is slashing almost 30% of staff in an attempt to return to a startup culture, claims the company.

Up to 420 jobs will go in the wave of redundancies, from a total staff of 1,400. It is thought that most of the losses will occur in the US, where the majority of MySpace staff are based.

“Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company,” said newly appointed head of MySpace, Owen Van Natta, speaking to the BBC.

“I understand that these changes are painful for many. They are also necessary for the long-term health and culture of MySpace,” he added.

The move follows speculation last week of impending lay-offs on the industry-insider blog, TechCrunch.

MySpace, which is owned by Rupert Murdoch’s News Corporation, claims to have 125 million users, but has lost market share in recent years to newer rivals Facebook and Twitter.

MySpace was bought for $580 million in 2005, and an advertising deal with search giant Google brings in revenue of $300 million a year. However, with traffic to the site dwindling, it is unlikely that the deal will remain as lucrative when it is reassessed in 2010.