MySpace Proposes International Restructure
Proposal Includes Plans for Office Consolidations and Staff Reductions
LOS ANGELES—June 23, 2009—MySpace today announced its intent to restructure its international operations and refocus personnel around a smaller number of territories, while retaining a robust global consumer presence.
The proposed restructuring plan, which is subject to consultation with international employees in some countries, would apply to all international divisions of the company, reducing MySpace’s international staff from 450 employees to approximately 150 employees and closing at least 4 of its offices outside the United States.
Upon completion of the proposed plan, London, Berlin, and Sydney would become the primary regional hubs for MySpace’s international operations. Under the proposed plan, MySpace would place all existing offices in Argentina, Brazil, Canada, France, India, Italy, Mexico, Russia, Sweden, and Spain under review for possible restructure. MySpace China, a locally owned, operated, and managed company, and MySpace’s joint venture in Japan would not be affected by the proposed plan.
“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.”
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About MySpace
MySpace is a technology company connecting people through personal expression, content,
and culture. MySpace empowers its global community to experience the Internet through
a social lens by integrating personal profiles, photos, videos, mobile, messaging,
games, and the world’s largest music community. MySpace is a division of News Corporation.