If Bloomberg News sources are to be believed, the reputed Internet company – Yahoo is closing down its China wing. This will lay off around 200 to 300 employees. On Wednesday, 18th March, Bloomberg reported that according to sources, Beijing office of Yahoo will close down soon leaving hundreds jobless. In a statement by Yahoo, “We are constantly making changes to align resources and to foster better collaboration and innovation across our business. We currently do not offer local product experiences in Beijing but the office has served as a research and development center” as reported by Bloomberg. However, when approached, Yahoo did not respond or gave any comment while being asked by AFP.
This decision by Yahoo follows yahoo’s recent business announcement in the month of January. Yahoo said that it will spin-off its stake in Alibaba. The Chinese ecommerce giant was listed on NYSE with a record offer. According to analysts and critics, severing the ties with Alibaba leaves Yahoo with assets, but no clear mission or path.
Contextually, you should know that the Internet company bought 40% stake of Alibaba in the year 2005 for $1 billion.
Yahoo shut down the China email service in the year 2013. That was the time Yahoo was embroiled in a controversy. Yahoo handed details of a Chinese journalist to the authorities and the journalist was sentenced to 10 years imprisonment based on the data provided by Yahoo.
The Beijing center of yahoo was the only location of Yahoo in the country.
According to a statement by yahoo, the company is going to consolidate certain functions only to a few offices including headquarter of Yahoo in Sunnyvale, California. Yahoo counted approximately 12, 500 employees worldwide at present and closure of the Beijing office will mean affecting around 2 percent of the company’s global workforce.