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MySpace considers office closures

MySpace looks set to close down a number of its international offices which could result in hundreds of employees being made redundant. According to The Guardian, the social networking site is considering closing offices in California, Italy, France and Spain.

The news comes as MySpace looks to cut costs and face up to the reality that it has been overtaken in the social networking field by rival Facebook. MySpace has been haemorrhaging users over the last 12 months and the company is now under pressure to win back those who have defected to its main competitor.

The fall in users combined with the global recession means that MySpace has been unable to generate as much revenue from adverts as it has done in the past and things could be set to get even more difficult for the Fox owned company when its $900m ad deal with Google runs out next year.

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