MySpace to cut its non-US workforce by 67% to lower costs

Social networking site MySpace, which recently announced its plan to reduce its US workforce by 30 per cent from 1,420 employees to 1,000, has now said the company will reduce its non-US staff by 67 per cent from 450 employees to 150 employees and close at least four of its offices outside US.

MySpace has also decided to place its existing offices in Argentina, Brazil, Canada, France, India, Italy, Mexico, Russia, Sweden and Spain under review for possible restructure. MySpace China, a locally owned, operated, and managed company, and MySpace’s joint venture in Japan would not be affected by the proposed plan, the company has said.

“Similar to our domestic restructuring, our international plan is designed to rein in growth in staff and expenses that we cannot sustain,” Owen Van Natta, chief executive officer, MySpace, has said in an email sent to the remaining staff. “These are difficult decisions and they are essential to our financial well-being and the re-establishment of our overall growth strategy.”

“Our goal to tap into as many international markets as possible drove us to create too many offices around the globe, and with them came inefficiencies. Under the new plan, we will refocus our efforts on regional business partnerships and integration in a smaller number of territories, while retaining a robust international presence,” Owen Van Natta has added.