Social network Myspace has confirmed it will reduce its workforce by almost half, making 500 staff redundancies as part of an organisational restructure.
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In a statement, Mike Jones, CEO of Myspace, said the new structure will allow the social network to develop products more quickly and gain financial flexibility.
"Today Myspace is implementing a significant organisational restructuring that will result in a 47% staff reduction across all divisions globally that impact about 500 employees," said Jones.
"Myspace will retain a core, dedicated international team to work with partners in order to ensure users, content partners and advertisers continue to be served," he added.
MySpace launched a new version of its website in October last year, focused on social entertainment in an attempt to regain share in the social network market.
Jones was keen to quash implications that the new version of Myspace had flopped. He said the changes to staff structures were driven by issues relating to its legacy business and "in no way reflect the performance of the new Myspace."
Myspace said 3.3 million new profiles have been created since the worldwide rollout of the new site.
Jones also confirmed Myspace UK will enter into a strategic advertising alliance with Fox Networks.