Murdoch to axe MySpace jobs

Rupert Murdoch's News Corp plans significant job cuts at its Fox Interactive Media unit, which houses the popular MySpace networking site, and has ditched plans to move the division into massive new headquarters in western Los Angeles, according to US media reports.

The savings push comes after the 78-year-old media mogul in April hired the former AOL boss Jonathan Miller to overhaul the internet unit, whose growth has stalled in the advertising downturn. Weeks later, he also replaced the two MySpace founders to revive the waning appeal of the site which has lost market share to its rival Facebook.

The Los Angeles Times reported on Friday that the latest cuts would affect jobs at MySpace. Other parts of the division would also be targeted.

Fox Interactive in the US declined to comment, but acknowledged it was reviewing "every aspect" of its operations and structure. "It's no secret that we are looking for ways to improve our products, increase the value of our digital assets and enhance the overall financial strength of the company," it said in a statement to Bloomberg.

A spokesman for News in Sydney had no comment on the report. According to union estimates, News has cut more than 80 editorial jobs at its Australian newspapers in recent months.

Seeking to reduce costs, Fox Interactive has also shelved plans to move to a new building this month, which it has leased for about $US350 million (NZ$560 million) in a 12-year deal, according to the Los Angeles real estate site Curbed, which quoted an internal email to staff. Instead, the company was now looking at subletting the space.

Fox Interactive's revenue fell 11 per cent in the March quarter as ad sales dropped 16 per cent, hurt by lower demand at MySpace. News bought the site in 2005 for $US580 million to spearhead its internet expansion. But it has come under pressure as Facebook has overtaken it in worldwide visitors and the messaging site Twitter has become the hot new web property.

- © Fairfax NZ News