MySpace Cuts Staff by 30 Percent

MySpace is not having a good week.

On the same day that news broke about Facebook overtaking MySpace in number of U.S. visitors, the social networking site confirmed Tuesday that it will reduce it workforce by 30 percent.

The layoffs cut across all U.S. divisions of the News Corp.-owned MySpace, and bring the total number of domestic staff at the company to 1,000 workers.

"Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company," MySpace chief executive Owen Van Natta said in a statement.

"I understand that these changes are painful for many," Van Natta continued. "They are also necessary for the long-term health and culture of MySpace. Our intent is to return to an environment of innovation that is centered on our user and our product."

Van Natta, who previously served as chief revenue officer and vice president of operations at Facebook, was named MySpace CEO in April.

"MySpace grew too big considering the realities of today's marketplace," said Jonathan Miller, News Corp's chief digital officer. "I believe this restructuring will help MySpace operate much more effectively both structurally and financially moving forward."