Derrick
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Social networking site MySpace plans to cut 30% of its staff, Reuters reported, and added that it will be closing at least four non-US offices.
In addition the site, which is owned by Rupert Murdoch’s News Corporation, plans to downsize international staff from approximately 450 to 150 and also intends to review the status of a number of existing offices in other countries.
According to Reuters, roughly half of the site’s user base is situated outside the US. This comes a week after the company revealed that it planned to streamline international operations by reducing staff and offices.
As part of the plan MySpace offices in Argentina, Brazil, Canada, France, India, Italy, Mexico, Russia, Sweden and Spain would be placed under review for restructuring. Upon completion of the plan London, Sydney and Berlin would become the primary international hubs.
Although recently appointed CEO Owen Van Natta, previously of Facebook, might suggest that this move is purely an effort to streamline the website to make it more efficient, some believe that it is part of a bid to make a comeback after MySpace was eclipsed by Facebook in 2008.
Since then MySpace has steadily declined when compared to its closest rival – Facebook. Their sliding market share has prompted News Corporation to restructure the site’s executive in the hopes of gaining ground. Despite this, in May 2009 Facebook reported 32 million more hits than MySpace globally.
South Africa is not due to suffer from the international restructuring of MySpace because the site does not have a global office in the country.
In addition the site, which is owned by Rupert Murdoch’s News Corporation, plans to downsize international staff from approximately 450 to 150 and also intends to review the status of a number of existing offices in other countries.
According to Reuters, roughly half of the site’s user base is situated outside the US. This comes a week after the company revealed that it planned to streamline international operations by reducing staff and offices.
As part of the plan MySpace offices in Argentina, Brazil, Canada, France, India, Italy, Mexico, Russia, Sweden and Spain would be placed under review for restructuring. Upon completion of the plan London, Sydney and Berlin would become the primary international hubs.
Although recently appointed CEO Owen Van Natta, previously of Facebook, might suggest that this move is purely an effort to streamline the website to make it more efficient, some believe that it is part of a bid to make a comeback after MySpace was eclipsed by Facebook in 2008.
Since then MySpace has steadily declined when compared to its closest rival – Facebook. Their sliding market share has prompted News Corporation to restructure the site’s executive in the hopes of gaining ground. Despite this, in May 2009 Facebook reported 32 million more hits than MySpace globally.
South Africa is not due to suffer from the international restructuring of MySpace because the site does not have a global office in the country.