MySpace has confirmed it will let go 47pc of its staff, which will affect 500 workers across all of its divisions.
In a statement, MySpace CEO Mike Jones said the company will enter strategic local partnerships in the UK, Germany and Australia in order to manage advertising sales and content.
He acknowledged the changes were tough but necessary, and said they were taken “in order to provide the company with a clear path for sustained growth and profitability.”
The layoffs are due to issues in relation to MySpace’s legacy business and Jones insisted it “in no way reflects the performance of the new MySpace.”
Jones notes he wishes to foster an entrepreneurial culture in the business, emphasising tech innovation, and states the new structure of the company will help them “move more nimbly, develop products more quickly and attain more flexibility on the financial side.”
News emerged earlier in the week that MySpace would lay off 550 to 600 members of staff. There are also indications that MySpace’s owner, News Corp, is planning to selling the ailing social media site.