The move will impact on its London HQ with the offices being reduced to skeleton staff.
The UK branch of MySpace of around 50 people will be swallowed by Fox Networks as part of a new partnership.
MySpace CEO Mike Jones said the aim is to "retain a core dedicated international team to work with partners in order ensure users, content partners and advertisers continue to be served".
At its peak the site reigned supreme as the top social networking website, but since then MySpace has been eclipsed by Facebook and has struggled to retain users since an overhaul of the site last year.
Rupert Murdoch’s News Corp bought MySpace for £370 million in 2005.
