MySpace, a division of Rupert Murdoch’s News Corporation, announced that it has cut  30 percent or approximately 400 people from its payroll in an effort to return to a “startup culture.” The layoffs will reduce the number of MySpace employees to around 1000.

In a press release, Owen Van Natta, the former Facebook executive brought in to restructure MySpace, stated that the social network had become “bloated.”

“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.”

Jonathan Miller, News Corporation’s chief executive of Digital Media said that MySpace had “grown too big given the realities of this current marketplace.” He added,

“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.”

Facebook is currently matching MySpace in its United States traffic, which was the last advantage MySpace had over its competitor. Users are defecting the social network for sites such as Twitter and Facebook. Perhaps the layoff will enable MySpace to reinvest and reinvent itself to offer a more competitive and useful product in the near future.