MySpace’s parade of new execs follows deep employee cuts
Owen Van Natta has hired eight new executives onto the MySpace gravy train since taking the helm earlier this year. However questions remain as to why he’s spending like a drunken sailor just three months after making deep cuts to the ranks of MySpace employees.
When he took the helm of the struggling social network back in April, Van Natta knew he was walking into a turnaround situation. MySpace’s growth had stalled and its share of social networking users was falling rapidly.
One of the first things that he did as Chief Executive was to lay off as many as 480 workers in June, botching their checks and speaking ill of the fallen in the process. Even in his press announcement, Van Natta called the company bloated and called for as much as 30 percent to be cut.
And what does every company with stunted growth and whose future is in jeopardy? You guessed it- less worker bees and a parade of stuffed shirts walking in the door.
Since the June layoffs MySpace has hired on eight new executives with titles spanning from Senior Vice President to Chief Revenue Officer. Frankly I don’t see how in this situation MySpace can afford a Chief Revenue Officer other than Van Natta.
Wasn’t that supposed to be Owen’s forte as the former CRO of Facebook? Apparently his stronger points include smug press releases about his executive spending spree after MySpace lost 4 million monthly visitors from July to August.
Maybe Van Natta should go back to focusing on revenue, as he’s certainly not going to win the hearts and minds of his troops in this fashion. The larger part of turning around MySpace is making people believe that it’s still relevant and innovative and that starts with its employees.
At this rate it’s pretty unlikely that MySpace will find relevance with consumers again, though it will likely be around long enough for Van Natta and crew to milk a hefty salary for a few more years.
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