Fox Interactive Media, the digital arm of News Corporation, is axing 5% of its workforce in an effort to cut costs. It is understood that about 100 roles will be affected on a number of websites including MySpace, Photobucket, Scout Media and Rotten Tomatoes.
The cuts follow news that the digital arm’s revenue fell by 23% in the final three months of 2008, though its full year results are yet to be published.
A Fox Interactive Media spokesman says: “I can confirm that several of the groups within FIM are eliminating some jobs and repurposing others. This is part of a larger effort we’re making to put FIM in the best possible position to succeed now and, more importantly, to emerge even stronger once the markets recover. It’s important to note that we continue to hire in many areas.”
The company has started a consultation with staff from across the company, including at its corporate offices, but has yet no decisions on which roles will go has been made.
A MySpace spokesman confirms that it is reviewing the way the business was run. “We are constantly aligning our business and resources to focus on the core strategic initiatives of MySpace,” he says.
Earlier this month, Fox Interactive Media appointed Simon Daglish, the former GCap Media national sales director, as its vice-president, commercial. Daglish is leading UK commercial strategy for the company.