MySpace Executes 30% Staff Reduction Today

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Those MySpace rumors we’ve been talking about are very real. A week ago we wrote that MySpace and parent company Fox Interactive Media would layoff hundreds of employees. Today the company is confirming those cuts, saying they’ll “reduce staff by nearly 30%.” We’re updating our layoff tracker to include this information.

A MySpace employee writes to tell us that there is extra security in the building right now, and that managers are being given boxes (presumably to give to employees to pack their stuff). Human resources booked a conference room from 12 – 4 as well.

MySpace has around 1,600 employees, which means 480 or so of them are going to be out of a job by 4 pm. Time to update your resumes. Our guess is another 300 will be gone by end of year.

Press release below:

MYSPACE REDUCES STAFF BY NEARLY 30%

Return to Start-Up Culture a Focus for Company Moving Forward

LOS ANGELES—June 16, 2009—As part of a plan to restructure itself into a more innovative, efficient, and entrepreneurial business, MySpace announced today that it will reduce its staff by nearly 30%. This restructuring plan crosses all U.S. divisions of the company and lowers the total number of domestic staff at MySpace to 1,000 employees.

“Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company,” said MySpace Chief Executive Officer Owen Van Natta. “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.”

“MySpace grew too big considering the realities of today’s marketplace,” said Jonathan Miller, News Corporation’s CEO of Digital Media and Chief Digital Officer. “I believe this restructuring will help MySpace operate much more effectively both structurally and financially moving forward. I am confident in MySpace’s next phase under the leadership of Owen and his team.”

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About MySpace
MySpace is a technology company connecting people through personal expression, content, and culture. MySpace empowers its global community to experience the Internet through a social lens by integrating personal profiles, photos, videos, mobile, messaging, games, and the world’s largest music community. MySpace is a division of News Corporation. (NYSE: NWS – News, NWS.A – News; ASX:NWS – News, NWSLV – News)

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