This is breaking now – we just got this official letter to the MySpace staff from one of our sources at MySpace in Europe. The official release follows, but here’s the gist: MySpace will be cutting 300 international staff and closing at least 4 offices outside the US, with those in Argentina, Brazil, Canada, France, India, Italy, Mexico, Russia, Sweden, and Spain coming under specific review. Owen Van Natta admits to trying to grow the company’s European operations too fast, and says that London, Berlin, and Sydney offices will become hubs for the company’s regional activities.  MySpace’ Japanese and Chinese operations will be unaffected. Here’s the full email:

From: Owen Van Natta
Subject: IMPORTANT: PROPOSED INTERNATIONAL RESTRUCTURE
Importance: High

Everyone,

Last week we made a number of changes to MySpace’s domestic structure in order to create a leaner, more nimble organization. Today, we are announcing the next step in our overall restructuring effort – a proposal to streamline our operations abroad.

Unlike our recent domestic restructuring announcement, what we are announcing today is a formal proposal we intend to implement, rather than an executed plan. As required by laws in countries where we operate, we will not implement the plan until we have consulted with potentially affected employees. As a result, even though the plan we are proposing today would apply to all international divisions of the company, a finalized international restructuring will be put into action over a period of days.

Similar to our domestic restructuring, our international plan is designed to rein in growth in staff and expenses that we cannot sustain. Our proposal would reduce MySpace’s international staff from 450 employees to approximately 150 employees and close at least 4 of our offices outside the United States.

Upon completion of the proposed plan, London, Berlin, and Sydney would become the primary regional hubs for MySpace’s international operations. Under the proposed plan, MySpace would place all existing offices in Argentina, Brazil, Canada, France, India, Italy, Mexico, Russia, Sweden, and Spain under review for possible restructure. MySpace China, a locally owned, operated, and managed company, and MySpace’s joint venture in Japan would not be affected by the proposed plan.

We are focusing on London, Berlin, and Sydney for two very simple reasons: (1) these are markets where we have a lot of MySpace users as well as the resources to allow us to compete effectively and (2) these are major international commerce centers where a robust MySpace presence can help our company develop new and innovative business partnerships.

As with the domestic changes we made last week, these proposed international reductions and eliminations will be extremely challenging – professionally and personally. These are difficult decisions and they are essential to our financial well-being and the re-establishment of our overall growth strategy.

Our goal to tap into as many international markets as possible drove us to create too many offices around the globe, and with them came inefficiencies. Under the new plan, we will refocus our efforts on regional business partnerships and integration in a smaller number of territories, while retaining a robust international presence. We remain steadfast in our commitment to reaching a global audience.

The last two weeks have been tough for everyone. The employees who leave us played an important role in the successes of MySpace in these international markets, and I thank them for their hard and dedicated work. The restructuring steps we have taken have laid the groundwork for an exciting new chapter of innovation for MySpace. I look forward to working with you all and speaking with you in the coming days.

Thank you,

Owen

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MYSPACE PROPOSES INTERNATIONAL RESTRUCTURING

Proposal Includes Plans for Office Consolidations and Staff Reductions

LOS ANGELES—June 23, 2009—MySpace today announced its intent to restructure its international operations and refocus personnel around a smaller number of territories, while retaining a robust global consumer presence.

The proposed restructuring plan, which is subject to consultation with international employees in some countries, would apply to all international divisions of the company, reducing MySpace’s international staff from 450 employees to approximately 150 employees and closing at least 4 of its offices outside the United States.

Upon completion of the proposed plan, London, Berlin, and Sydney would become the primary regional hubs for MySpace’s international operations. Under the proposed plan, MySpace would place all existing offices in Argentina, Brazil, Canada, France, India, Italy, Mexico, Russia, Sweden, and Spain under review for possible restructure. MySpace China, a locally owned, operated, and managed company, and MySpace’s joint venture in Japan would not be affected by the proposed plan.

“With roughly half of MySpace’s total user base coming from outside the U.S., maintaining productive and efficient operations in our international markets is important to users worldwide and our immediate financial strength,” said MySpace Chief Executive Officer Owen Van Natta. “As we conducted our review of the company, it was clear that internationally, just as in the U.S., MySpace’s staffing had become too big and cumbersome to be sustainable in current market conditions. Today’s proposed changes are designed to transform and refine our international growth strategy.”