It was widely speculated that MySpace was getting ready to undergo massive layoffs at its company, and the social network has confirmed the rumors today.
Touting the layoffs as a plan for restructuring the company in order to become more “innovative, efficient and entrepreneurial,” MySpace is letting go of 30% of its staff, whittling the company down to 1,000 employees. MySpace CEO Owen Van Natta was quoted as saying that the staff had become bloated, making MySpace hindered in the innovation company.
I wouldn’t say that MySpace was ever all that innovative, but it’s a widely recognized effect of large companies that need to constantly compete with smaller startups–the leaner and more nimble the company, the more quickly they’re able to adapt to changing environments in their respective industry.
As we’ve previously noted, this inability to make changes quickly enough to keep pace has been one of many ongoing issues for MySpace.
In light of widening platforms, changing trends, new ways of networking and modified advertising partnerships with large companies like Google, MySpace has been losing traction for some time now. While still dominant based on size alone, MySpace’s traffic has significantly decreased in the past year or so, making it difficult for MySpace to maintain an ad-based revenue model.
With the statements MySpace has made in regards to the layoffs, it’s evident that the social network is hoping to better compete in the space by working on product development and new ways of implementing the way in which users actually network on its site.
As I mentioned earlier this year, one way in which MySpace could improve its standing is to return some of its focus back to its core competencies. MySpace has tried its hand at several feature add ons as well as services and products, partly in effort to keep up with changing trends. This has been a blessing and a curse in its own right, as it clogs the channels of communication within MySpace, will creating a disparate environment for its users. The coming months will show what MySpace has in store for its newly trimmed company and if a comeback is in the cards for this social network.