Internet social networking site MySpace said it would cut 430 jobs, almost a third of its present workforce, to match current demand.

"Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble, team-oriented company," Chief Executive Officer Owen Van Natta said.

"Our intent is to return to an environment of innovation that is centered on our user and our product," Van Natta said.

Johnathan Miller, chief executive officer of News Corp.'s Digital Media, said MySpace "grew too big considering the realities of today's marketplace," CNNMoney reported Tuesday.

MySpace also faces growing competition from Facebook and Twitter. It was bought by News Corp. in 2005 for $580 million, when it was the leader in Internet social networking, commanding 73 percent of the time spent on social networking sites.

That had dropped to 23 percent by April this year, CNNMoney reported.

In addition, a $900-million advertising contract with Google will end in 2010, forcing MySpace to seek new revenue, the Los Angeles Times said.