The MySpace headquarters in the United States announced its plans some time ago to layoff over 500 people, which was about 47% of its employed staff. Now the MySpace in the UK is also going through company changes as it hands over the ad sales and sponsorship division to .Fox Networks, which is the online Fox International Channels sales division.
The company’s recent announcement about this change comes amidst the flurry of activity surrounding MySpace and its recent struggles with staying viable in the social networking industry. Declines in sales and user growth have forced the company into mass layoffs and top-level executives leaving the company for other employment offers. The UK VP of sales left MySpace to join ITV, a major content distributor in the UK industry. There are also talks of the offices in Australia and Germany to outsource the sales management and content sourcing to other entities.
Ad sales are now only managed in the U.S. office, until there are further decisions regarding its final destination for that action. MySpace sales are managed by .Fox only in Brazil, Argentina, Mexico, Spain, Italy, Poland and Turkey. In Asian offices, .Fox represents the MySpace ads sales in Singapore, Indonesia, Thailand, Philippines, Hong Kong, Taiwan and India.
How are the recent developments affecting the MySpace corporation?
Executive sources cite the changes as positive and encouraging for the flailing MySpace company. The recent partnership between MySpace and .Fox is reportedly an exciting time, according to SVP’s Rebekah Horne (MySpace) and Deobrah Armstrong (.Fox). The new partnership is expected to be a positive change and one that will possibly ignite any residual interest in the social networking site. By partnering with a company like .Fox to handle advertising issues, the companies both hope to continue to foster good customer relations and branding among users and clients alike.