MySpace, the No. 2 social networking site on the internet, announced plans to cut up to 30 percent of its staff as the company tries to lower costs during turbulent times.

Roughly 30 percent, or about 425 people, will reportedly lose their jobs leaving about 1,000 employees working for the company.

"Simply put, our staffing levels were bloated and hindered by our ability to be an efficient and nimble team-oriented company," MySpace CEO Owen Van Natta said in a statement.  "I understand that these changes are painful for many.  They are also necessary for the long-term health and culture of MySpace."

The job cuts will hopefully return MySpace back to a "start-up culture" in which the site was excited and worked hard to sign up new users.  It remains unknown when employees will begin to receive their pink slips, but the move is expected to begin extremely soon.

In May, Facebook had 70,278,000 unique visitors compared to MySpace's 70,237,000 users, which is one of the first times Facebook overtook MySpace in U.S. visitors.  However, Facebook had more than 307 million unique visitors across the world in April, with MySpace trailing far behind with just 123 million total.

MySpace also faces advertising revenue issues due to the site losing viewers and a struggling global economy that means advertisers are less willing to spend money.  The site is still profitable, but News Corporation has been losing money due to lack of advertising and viewership among newspapers and local TV channels.

Even though MySpace exploded onto the internet a few years ago, Facebook, Twitter and other social networking sites have stolen valuable market share away from the News Corporation-owned company.  The site then fell short of News Corporation's financial projections for the site, and will continue to miss projections over the coming quarters, analysts warn.