MySpace Lays Off 400

After the dust settles at MySpace the social networking site will be 400 employees fewer, leaving about 1000 in an attempt by Owen Van Natta (former Facebook executive who recently became CEO of the company) to return to a “start-up culture.” In a statement Van Natta said “Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company. I understand these changes are painful for many. 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.” The onetime leader in social networking sites, MySpace has taken a bit of a backseat to Facebook of late and it would appear is feeling the pinch.

Source: NYTimes

Game Industry Not Sheltered From Economic Downturn Afterall

Game giant Electronic Arts Inc. (EA) is laying off about 6 per cent of its work force to cut costs after posting a wider than expected quarterly net loss on Thursday. “Considering the slowdown at retail we've seen in October, we are cautious in the short term,” said John Riccitiello, chief executive, in a statement. “Longer term, we are very bullish on the game sector overall and on EA in particular.” The company said it expects about $50 million in annual pretax cost savings as a result of the layoffs, which will amount to about 500 - 600 positions across all functional areas. Wow, if you use the 600 number that puts the average salary + benefits for these positions at $83,333! Globe and Mail story.