Loss of 500 Jobs At Myspace

Rupert Murdoch, the head of media giant News Corp., and his firm’s Myspace, a social networking web site, gave notice of a restructuring Tuesday that will result in the loss of 500 jobs world-wide.

Advertising revenue and monthly visitors to Myspace has been down.

The new organizational structure will enable us to move more nimbly, develop products more quickly and attain more flexibility on the financial side,” Myspace Chief Executive Mike Jones explained in a statement.

Myspace never really figured out which one it wanted to be,” Dave McClure, founding partner of 500 Start-ups. “For the life of me I don’t know why they weren’t able to pull it off.”

The social network struggled to innovate. The first signs of Myspace’s troubles starred in 2008, when News Corp. reported that it was falling short of its $1-billion revenue projections for the web site.

People familiar with the situation said News Corp. is looking-over potential buyers.