The US home of social networking hub MySpace is clearly feeling the pinch of the global economic downturn, as yesterday saw the announcement that they would be firing one third of their company staff.

Making matters more severe however is the quote from MySpace CEO Owen Van Natta, describing the former staffing level as “bloated”. “Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company,” Van Natta explained in a company press release. “I understand that these changes are painful for many. They are also necessary for the long-term health and culture of MySpace. Our intent is to return to an environment of innovation that is centered on our user and our product.”

MySpace’s new restructuring plan will cross all U.S. divisions of the company, lowering the total staff to around 1000 members. Whilst there’s no word on whether such changes will effect MySpace’s global arms, local marketing website mUmBRELLA reports that the MySpace Australia’s structure is likewise “under review”.

Do you think they fired Tom?

Here at ITM HQ, we want to know how, or even if, this effects you? Do you still use MySpace, or is this a sign that the social networking giant has slipped in the wake of other outlets such as Facebook and Twitter? Let us know your feelings in the comments below.