MySpace Plans 300 Added Layoffs In Intl Work Force
I guess they could not adapt or die.
http://online.wsj.com/article/BT-CO-...23-703040.html
Social-networking Web site MySpace said Monday that it intends to slash its international work force by two thirds to about 150 employees as it strives for greater efficiency under new leadership.
The move follows last week's announcement that the company would cut its U.S. work force by nearly 30% to about 1,000.
The Web site, which like Dow Jones Newswires is owned by News Corp. (NWS), also plans to close at least four offices outside the U.S.
Analysts have long predicted cuts at MySpace, which was recently eclipsed by Facebook as the networking site with the most worldwide users. MySpace remains ahead of Facebook in the U.S. by number of unique monthly visitors.
After the restructuring, London, Berlin and Sydney would be the regional hubs for MySpace's international offices. Offices in Argentina, Brazil, Canada, France, India, Italy, Mexico, Russia, Spain and Sweden are under review for possible restructuring. MySpace China, which is locally owned and operated, and MySpace's joint venture in Japan, wouldn't be affected by the plan.
"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 Tuesday.
News Corp. reported an $89 million loss in the division that includes MySpace for the most recent quarter, partially due to higher costs related to a music venture and new features on the site.
Van Natta was hired in April with the charge of jump-starting growth and recapturing the buzz the Web site once carried.
News Corp.'s shares closed Monday at $10.11 and haven't traded premarket.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; [email protected]
The move follows last week's announcement that the company would cut its U.S. work force by nearly 30% to about 1,000.
The Web site, which like Dow Jones Newswires is owned by News Corp. (NWS), also plans to close at least four offices outside the U.S.
Analysts have long predicted cuts at MySpace, which was recently eclipsed by Facebook as the networking site with the most worldwide users. MySpace remains ahead of Facebook in the U.S. by number of unique monthly visitors.
After the restructuring, London, Berlin and Sydney would be the regional hubs for MySpace's international offices. Offices in Argentina, Brazil, Canada, France, India, Italy, Mexico, Russia, Spain and Sweden are under review for possible restructuring. MySpace China, which is locally owned and operated, and MySpace's joint venture in Japan, wouldn't be affected by the plan.
"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 Tuesday.
News Corp. reported an $89 million loss in the division that includes MySpace for the most recent quarter, partially due to higher costs related to a music venture and new features on the site.
Van Natta was hired in April with the charge of jump-starting growth and recapturing the buzz the Web site once carried.
News Corp.'s shares closed Monday at $10.11 and haven't traded premarket.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; [email protected]
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