MySpace Cuts International Staff

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MySpace.com announced Tuesday that it planned to close at least four of its international offices and reduce its overseas staff by two-thirds.

The cuts from the Beverly Hills-based social networking site come a week after it axed a third of its U.S. staff in a company-wide restructuring. Those cuts left MySpace with about 1,000 domestic employees.

Under the proposed plan MySpace, which is owned by News Corp., would reduce its international staff from about 450 employees to 150. MySpace offices that could be shut down include those in Argentina, Brazil, Canada, France, India, Italy, Mexico, Russia, Sweden and Spain.

MySpace’s offices in London, Berlin, Sydney, China and Japan will not be impacted by the proposed cuts.

MySpace Chief Executive Owen Van Natta said in a statement that the company’s international markets are still important. But he also said MySpace’s overseas staff had become bloated.

“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,” he said.

A company spokeswoman said it is not certain when the company will decide which offices to close. She also said MySpace would not cut off service in countries where the company decided to close operation.

The layoffs come as MySpace faces stiff challenges. Last month, competitor Facebook Inc., which is based in Palo Alto, surpassed MySpace as the number one social networking site in the United States. (Facebook already was ahead of MySpace in international users.) Then, rumors surfaced that Google Inc. would restructure an advertising partnership with MySpace that would leave the social networking company less revenue in the future.

Van Natta, who was appointed as chief executive in April, will have to find ways to gain ground on Facebook while also boosting the company’s revenue stream.

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