MySpace yesterday announced plans to practically half its staff–cutting around 500 jobs. The company chalks the unfortunate move up to plans for a “much tighter focus” for the company.
CEO Mike noted that the decision to cut jobs was made in order to slash costs for MySpace, not as a reflection of job performance,
Today’s tough but necessary changes were taken in order to provide the company with a clear path for sustained growth and profitability. These changes were purely driven by issues related to our legacy business, and in no way reflect the performance of the new product. The new organizational structure will enable us to move more nimbly, develop products more quickly, and attain more flexibility on the financial side. We are also committed to rebuilding the company with an entrepreneurial culture and an emphasis on technical innovation.
Such a move has been anticipated for some time now, in spite of the company’s recent much-publicized site-wide redesign. The company has been struggling in recent years to fight increasing marginalization at the hands of Facebook.
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