MySpace cuts 30 percent of workforce

myspace-layoffs

MySpace announced on Tuesday afternoon that it will reduce its staff by nearly 30 percent (about 400 jobs) in an effort to improve its competitiveness. After the layoffs, the social networking site will have about 1,000 workers.

MySpace’s staff is “bloated” considering the “realities of today’s marketplace,” which prevents it from operating with efficiency and innovation, Chief Executive Officer Owen Van Natta said in a statement.

The social networking site was the largest in the U.S. until last month, when it was overtaken by Facebook, according to research firm ComScore Inc. Just a year ago MySpace was dominating Facebook in America, pulling in 73.7 million users per month in May 2008 to Facebook’s 36 million.

Despite the newly announced employee reductions, MySpace’s workforce will remain larger than Facebook’s staff of about 900.