MySpace to lay off 400 employees: report

Leading social networking site MySpace will be laying off 400 employees or about 30 per cent of its US workforce, says a media report.

"MySpace, once the world’s largest internet social network, will cut its US workforce by 30 per cent, or about 400 employees, as it fights for relevance against stiff competition from rival Facebook," British daily the Financial Times said.

The company, owned by Rupert Murdoch's News Corp, faces a company-wide restructuring, which would include an evaluation of its global operations. It would employ 1,000 in the US after the cuts, the report said.

"Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company," the daily said quoting MySpace Chief Executive Officer Owen Van Natta.

MySpace was acquired by News Corp for $580 million in 2005.

"...MySpace's slow erosion has led some to second-guess Murdoch's initial vision, as the company has yet to harness the power of the social network as a platform for his company's deep trove of films and television shows," the report noted.

Attributing to comScore, the daily said, MySpace was the largest US social network until last month, when it was overtaken by Facebook.