MySpace CEO confirms 500 layoffs

Mike Jones, chief of News Corp's ailing social networking site MySpace, on Tuesday confirmed it would cut 500 staff through a 47 percent headcount reduction across all its global divisions.

"Today's tough but necessary changes were taken in order to provide the company with a clear path for sustained growth and profitability," Jones said, according to statement posted by the Wrap.com.

"These changes were purely driven by issues related to our legacy business, and in no way reflect the performance of the new product."

It confirmed recent rumours that News Corp would slash MySpace headcount before possibly selling off the site, however today's announcement made no mention of a sale.

Jones was yet to reveal the fate for MySpace's Australian workers.

"Details about Australia and Germany are currently being finalised," he 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."

He said MySpace's UK advertising sales would be handled by FoxNews.