Fox Interactive, in the process of its restructuring as the new management settles in (News Corp (NYSE: NWS). digital head Jon Miller, the new MySpace team of Owen Van Natta, Mike Jones and Jason Hirschhorn, etc.), has decided against moving into the new office building in Playa Vista in the Los Angeles area, according to an e-mail sent out by Miller on Friday (pasted below). This means one of the biggest LA commercial real estate deals in recent years has been scuttled as well. The company announced its plans to move into a swanky new half-million square feet of office space in Playa Vista last year, when the world looked a lot different; it is committed to a 12-year, approximately $350-million lease, according to LAT. The idea with the new space was to consolidate all of FIM’s LA offices. The move was planned to start this month, but now the company is looking to sublet the space, a formidable task at best in this economy.
As part of this rethink, FIM will also be laying off some employees, though not clear how many would be affected. The layoffs are likely to be a significant number, considering how the unit has missed its revenue targets over the last year; in its Q109 results, revenues were down 11 percent. FIM currently has about 2,000 employees. These layoffs come about two months after News Corp brought in former *AOL* CEO Jon Miller to head News Corp.’s digital efforts; FIM reports into Miller.
This follows a similar rethink by News Corp about moving into new office space in London: News International, the news arm of News Corp in UK, decided against a headquarters’ investment last November.
The memo from Miller, pasted below:
Since coming on board, it