Beverly Hills-based Myspace confirmed today that it will lay off about 30% of its U.S. workforce, which is approximately 425 employees. It isn’t a great shock that MySpace is undergoing some restructuring, given the challenges they are facing- last year Facebook surpassed the social media giant in global popularity, and advertising revenues are in decline across the board. What is surprising is that CEO Owen Van Natta has implied that that the employees losing their jobs are somehow responsible for the company’s difficulties. In a statement released today, Van Natta said:
Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company. 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.
Job cuts = efficiency. Now we know.
Previously on FBLA:
Sizeable Layoffs On The Horizon For MySpace