Facebook European HQ heads to Dublin

The move comes just days after Sir Martin Sorrell's WPP Group announced it too was moving its HQ to the Irish capital.

Sheryl Sandberg, chief operating officer at Facebook, called the "talent pool" in Dublin "world-class".

She added: "Recruiting local talent will help us better understand the needs of local users and the regional dynamics that, in turn, can give us better insight into what features matter most."

This will be Facebook's first technical and operations office outside the US and will not affect the European commercial headquarters which is based in London.

The move is rumoured to be creating more than 70 jobs. Barry O'Leary, chief executive of Ireland's Industrial Development Agency, confirmed employment would be imminent, saying: "I understand their recruitment activities are underway and Irish positions are already posted to their website."

WPP said on Tuesday it would move its headquarters from Britain to Ireland, claiming the move would save the firm between £60m and £80m a year following proposed changes to Britain's taxation of foreign earnings.