MySpace to slash two-thirds of its workforce

MySpace is to cut two thirds of its global workforce and close offices in at least four countries.

The social network, which cut 30% of its US staff earlier this month, said its international restructuring plans will see its workforce outside of the US reduced from 450 to 150 staff.

The News-Corporation-owned site confirmed plans to “refocus personnel around a smaller number of territories”, with “at least” four offices closing.

MySpace offices in Argentina, Brazil, Canada, France, India, Italy, Mexico, Russia, Sweden and Spain have all been put “under review for possible restructure”.

However, the company said it will retain offices in London, Berlin and Sydney as its “primary regional hubs”.

MySpace China, a locally-owned and operated firm, and the MySpace site in Japan will not be affected by the plans.

Owen Van Natta, MySpace’s chief executive, said: “With roughly half of MySpace’s total user base coming from outside the US maintaining productive and efficient operations in our international markets is important to users worldwide and our immediate financial strength.

“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.

“Today’s proposed changes are designed to transform and refine our international growth strategy.”

MySpace’s advertising deal with Google, which accounts for nearly half of the social networking site’s revenue, is due to end in June 2010.