MySpace to cut its US workforce by 30% to lower costs
17 June, 2009
Social networking site MySpace, which is owned by Rupert Murdoch’s News Corp, has decided to reduce its US workforce from 1,420 employees to 1,000. According to MySpace, all divisions within the company will be affected by this decision.
In an email sent to the remaining staff, MySpace CEO Owen Van Natta has said, “I believe this is the first difficult step toward a major turnaround – a step that will not only shore us up in the short term, but position us for long term success. We need to become a more innovative company.”
“These decisions are difficult for everyone, but especially for our friends and colleagues who contributed to MySpace’s success and are directly affected by the changes. Through no fault of theirs our company’s size became unsustainable. The future success of MySpace is dependent upon us operating as a nimble and entrepreneurial company with the adaptive mentality of a start-up,” Owen Van Natta has added.
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I think the second and the third screen will play an important role in building brands and consumer loyalty going forward. You watch the first screen (TV) from a distance, look into the second screen (PC) from nearer distance (two feet away) and then you have your third screen (mobile) with you 24 x 7 and very close to you. How effectively you use these third and second screens is the way forward for any brand. "
I don't completely agree with reducing the workforce, i have the following questions to the management with regards to cutting the work force.
1. Why recruit them when they are excess in the first place, when you have a business plan as part of expansion recruit them under the cover of recession sack them.
I think this is happening in all IT companies, recruit left right and center without any proper plan and pay them hefty sums to change their lifestyles to suit the disposable income and when bad times hit they are first ones to be chucked out.
I think instead of doing this under the disguise of recession, this process should be regular and based on performance the sacking should happen, that will bring good amount of synergy within the employees to produce quality work.
2. Why pay them more? based on their education qualification and experience pay them what is required and not corrupt them with hefty sums. So that the demand of the products are moderate and no skyrocketting price rise in anything and everything because of their spending habits.
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