MySpace to axe international staff in restructuring

According to reports from Techcrunch this morning, the huge restructuring at MySpace will continue outside the US with up to 300 staff being axed and four or more offices closing before the end of the year.

London, Berlin and Sydney look set to become the main hubs for MySpace outside the US.

As brutal as the cuts appear to be with over 60% of international staff being given the boot in addition to the cull of 33% in the US, revenues at MySpace are reportedly set to plummet by 15% to $495 million by the end of 2009.

It’s also clear, while the advertising market even online is challenging, Facebook continues to present a massive challenge having stolen MySpace’s social networking crown last year.

What’s the future for MySpace, that Rupert Murdoch so astutely purchased back in 2005?

Although growth is flat, it’s still profitable and ought to be more so now costs have been slashed so brutally.

It’ll be fascinating to see whether there’s a strategy to grow users after this phase is over. If not, it may be doomed to become the next Friendster.