MySpace axes half its workforce

MySpace has confirmed that it is to cut almost half of its staff world wide as it struggles to compete against rival social networking service Facebook, with 500 jobs to go across the globe.

It seems that the cuts in the company's Chinese division, which saw 30 of the company's 50 local staff axed, were but the tip of the iceberg, with MySpace chief executive Mike Jones confirming that 500 jobs are to go across the globe - around 47 per cent of the company's overall workforce.

In a statement, Jones claimed: "We are [...] committed to rebuilding the company with an entrepreneurial culture and an emphasis on technical innovation. The new organisational structure will enable us to move more nimbly, develop products more quickly, and attain more flexibility on the financial side."

It is not known how many of the company's UK employees are for the chop, but the company has also announced that responsibility for UK advertising sales is to be farmed out to Fox Networks - a company owned by News Corporation, which bought MySpace in 2005 for £360 million at the height of the social networking craze and has been regretting it ever since.

It is thought that some UK ad staff are to move to Fox Networks and other staff to MySpace International in order to minimise job losses.