NEW YORK ( TheStreet) -- MySpace, News Corporation's ( NWSA) social networking site, is cutting 47% of its staff, or about 500 employees, as it attempts to restructure and revive the business. Almost 500 MySpace employees across all of its operations will lose their jobs this month, according to a statement from the Web site today, amid reports that News Corp. may be looking to sell the social networking site.
"Today's tough but necessary changes were taken in order to provide the company with a clear path for sustained growth and profitability," CEO Mike Jones said in the statement. "These changes were purely driven by issues related to our legacy business, and in no way reflect the performance of the new product." The site has about 1,000 employees in the U.S. and 120 staffers in London, Sydney and Berlin. Most of the 50 U.K.-based employees will leave the company as the business prepares to be folded into Fox Networks through a new local partnership deal. "Details about Australia and Germany are currently being finalized," Jones said. "MySpace will retain a core, dedicated international team to work with partners in order to ensure users, content partners and advertisers continue to be served."