MySpace is restructuring its international operations in order to refocus personnel with a reduced area of territories. MySpace believes it will be able to retain a robust global consumer presence by doing this.
According to a press release from the company, MySpace’s international staff will be cut back from the current 450 international employees to 150. The company also announced four offices outside of the United States would be closed down according to a press release.
The MySpace offices in London, Berlin and Sydney would become the primary hubs for international operations under the proposed plan. Offices in Argentina, Brazil, Canada, France, India, Italy, Mexico, Russia, Sweden, and Spain would be placed under review for possible restructure.
Since the 2005 purchase of MySpace by News Corp., the company has faced difficulty adding to its user base. Facebook has surpassed MySpace in usage with more than 200 million members compared to the 125 million that are members of MySpace.
Jonathan Miller, the recently appointed CEO of digital media and chief digital officer at News Corporation has stated that MySpace had grew too big when one considered the marketplace in today’s economy.
“With roughly half of MySpace’s total user base coming from outside the U.S., maintaining productive and efficient operations in our international markets is important to users worldwide and our immediate financial strength,” said MySpace Chief Executive Officer Owen Van Natta. “As we conducted our review of the company, it was clear that internationally, just as in the U.S., MySpace’s staffing had become too big and cumbersome to be sustainable in current market conditions. Today’s proposed changes are designed to transform and refine our international growth strategy.”
Last week MySpace announced the company was reducing its staff by 30 per cent within the United States.
Times Online reports:
Owen Van Natta, the chief executive, said: “As we conducted our review of the company, it was clear that internationally, just as in the US, MySpace’s staffing had become too big and cumbersome to be sustainable in current market conditions.”
The total restructured work force for MySpace will go from 1,950 to 1,150.
The MySpace offices in Japan and locally owned MySpace China are not affected by the proposed plan.