MySpace to cut workforce in half

Jan. 11, 2011 at 6:42 PM

BEVERLY HILLS, Calif., Jan. 11 (UPI) -- Social Web site MySpace said Tuesday it will lay off about half of its workers, cutting 500 jobs in the United States and elsewhere to streamline operations.

Chief Executive Officer Mike Jones said, "The new organizational structure will enable us to move more nimbly, develop products more quickly and attain more flexibility on the financial side," The Los Angeles Times reported.

With recent changes, the company purchased by News Corp. in 2005 for $580 million is regaining lost popularity, Jones said, pointing to increased activity in some of its online forums and 3 million new subscribers.

"The new MySpace is trending positively," he said.

Firms that research online activity had data that was less positive. ComScore Media Metrix said MySpace had 3.7 million fewer visitors in November compared with October's 54 million total visitors.

A firm that tracks advertising, eMarketer, said advertising revenue at MySpace fell 26 percent in 2010.

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