Massive 30% Myspace Layoffs – Heightened Security at MySpace HQ
Nearly 30% of MySpace staff will be unemployed by 4pm, PST today as the company lays of between 450 and 500 of it’s 1,600 or so domestic employees.
It appears that the company decided to get rid of the staff as quickly as possible, dropping the following press release and facilitating the layoffs all on the same day, taking them by surprise. Techcrunch is reporting that a mole within the company says there is extra security in the building and that managers are being given boxes, presumably to give staff to put their belongings in before they leave.
Since this situation is still developing, very little info is available right now except for the 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.”
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)