Following reports it would be the case, MySpace has announced it has cut its head count by just under 30%, an improvement on the feared 50%.

The company has described the lay offs as a "return to start-up culture", although the number of staff left in the US will still number 1000.

MySpace said that the job cuts were "evenly distributed" across all US divisions of the company and has not provided any information on whether European operations were, or will be affected.

"Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company. I understand that these changes are painful for many", Owen Van Natta, CEO of Facebook said in a statement.

"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".