US Internet social networking giant MySpace said Tuesday it would cut 500 jobs, nearly 30 per cent of its domestic staff, in a restructuring aimed at boosting efficiency.
MySpace, a unit of media magnate Rupert Murdoch's News Corporation, said it was cutting payrolls "as part of a plan to restructure itself into a more innovative, efficient, and entrepreneurial business."
The restructuring plan affects all US divisions of the company and the round of job cuts will lower the domestic workforce to 1,000 employees, it said in a statement.
"Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company," said Owen Van Natta, MySpace chief executive.
"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."
Van Natta, who was named MySpace CEO in April, was a chief revenue officer and vice president of operations for Facebook when he resigned from the rival company in early 2008.
Facebook's popularity has soared amid a surge in social networking in the United States.
Facebook was the top social networking site when ranked by total minutes for the month of April, showing a gain of 700 per cent from a year earlier, according to a recent study by Nielsen Online.
MySpace was in second place, with its total minutes declining from 7.3 billion in April 2008 to 5.0 billion in April 2009.
Agencies
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