News Corp May Dissolve Fox Interactive, Fire 300 More

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By Fall, there will be no such thing as the brand Fox Interactive, a single source close to News Corp (NWS) digital execs tells us.

This would explain why Fox Interactive CFO Ed McKenna is out after Tuesday’s layoffs.

Reached, a FIM spokesperson confirmed News Corp is “examining Fox Interactive Media and its role as a corporate umbrella for a number of our digital businesses”:

” In conjunction with the MySpace staff cuts this week,  we reduced our corporate FIM staff and also assigned certain positions to specific business units.  These moves will allow the business leaders at each of our sites to  operate in a more streamlined environment and have more direct responsibility for their teams.”

The same source close to News Corp execs tells us the turmoil at the social network is not over.

Specifically, we hear:

  • There will be another round of cuts coming, with 300-350 axed.
  • Top management has hired an executive search firm to find a replacement for MySpace president of ad sales, Jeff Berman.
  • Fox Interactive Media wil not exist by the fall as a division of News Corp.
  • MySpace cofounder Tom Anderson is now a professional ambassador to MySpace users.

Take these last few tidbits with a grain of salt. Though we trust our source, some of this news directly contradicts what Kara Swisher has already reported. She is very well-connected.

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