MySpace is confirming earlier rumors as it will lay off 30 percent of its staff of more than 1600 employees. The announcement came after it was reported last week that the social networking company would fire a “massive” number of people.

“Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company,” said MySpace Chief Executive Officer Owen Van Natta, who joined the company in April, after leaving an executive position at rival Facebook. “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.”

The restructuring was said to affect the entire Fox Interactive Media, Newscorp's online division, which the social networking site is a large part of, though this hasn't been confirmed. MySpace wants to get to about 1,000 employees, hoping to return to a “startup culture.” Facebook, the largest social network in the world and recently in the US, having marginally passed MySpace in May, on the other hand, has about 850 employees.

“MySpace grew too big considering the realities of today’s marketplace,” said Jonathan Miller, News Corporation’s CEO of Digital Media and chief digital officer. “I believe this restructuring will help MySpace operate much more effectively both structurally and financially moving forward. I am confident in MySpace’s next phase under the leadership of Owen and his team.”

The layoffs come as no surprise as MySpace has seen a big decline in popularity in recent months both in the media and among its users, who have been steadily shrinking in numbers while Facebook's have doubled since last year. Whether the restructuring will be enough to turn the tides for MySpace remains to be seen but the company is still a social networking giant and has a clear advantage in MySpace Music.