Huge layoffs at MySpace
Owen Van Natta
This week, social networking giant MySpace eliminated 30 percent of its workforce. Who knew the once-biggest, most well-known and first “major” social networking site would fall victim to the economy?
Perhaps it doesn’t have anything to do with the economy. Maybe the company really did just want to return to a “startup culture” and “restore an environment of innovation,” like MySpace executive Owen Van Natta told the New York Times. Or maybe it was something else.
Facebook is in your face
Facebook crept up on MySpace a bit, I think. It started off only allowing college students to join. Then it allowed high schoolers. Ever since it opened the floodgates to a “come one, come all” guest list, there’s no doubt it has overtaken a huge share of the social networking market. Though facebook can be used for marketing things like online payday loans in San Diego, it is mostly a quick, easy way to connect with and keep up with friends, acquaintances and business contacts.
For a while, it seemed everyone had a facebook account anda MySpace account. As applications and features and news feeds made facebook a downright addiction for most users, MySpace lost its luster for many. It just doesn’t have the slick design, speedy application downloads and overall classiness that facebook seems to exude.
He knows the trade
Interestingly, the man who now runs MySpace, Owen Van Natta, used to be an executive for Facebook. At least he has some experience in the field. It seems a little shady that just two months after Van Natta was hired by News Corporation to run MySpace he announced a 30 percent reduction in workforce.
But, business is business. If he already worked for the seemingly more successful social networking giant, he must know a little about the job.
“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.”
By the numbers
MySpace now has fewer than 1,000 employees. According to the New York Times, Facebook matches MySpace traffic in the United States even though MySpace still has more members:
According to comScore, Facebook recently matched MySpace in traffic in the United States — the one country where MySpace, with 70 million members, still had an advantage.
That statisic doesn’t surprise me at all. Think of all of those MySpace accounts that say “last login 2005.” You know, the ones who are only friends with Tom? If you don’t know what I’m talking about, head to MySpace and just start searching random common names.
More from MySpace
Jonathan Miller, chief executive of Digital Media for News Corporation, which owns MySpace, had some things to say about the big layoffs:
“MySpace grew too big considering the realities of today’s marketplace. I believe this restructuring will help MySpace operate much more effectively both structurally and financially moving forward. I am confident in MySpace’s next phase under the leadership of Owen and his team.”
