Yahoo Will Shut Down Beijing Office and Quit China
The tech giant has announced its plans to close its last office in China as part of its new cost-cutting strategy. According to media reports, shutdown of Yahoo’s research and development in Chinese office will cut 200 to 300 jobs. The California-based company confirmed that it notified employees about the closure a few days ago. In fact, Yahoo has cut staff elsewhere in its attempt to keep up with the Internet market’s transition to portable devices instead of desktop computers.
Leaving China follows the company’s announcement made in January about its intentions to spin off its stake in Chinese e-commerce giant Alibaba. By the way, the latter listed on the New York Stock Exchange in a record offer back in 2014. Nine years earlier, in 2005, Yahoo acquired a 40% stake in Alibaba for $1bn and turned over control of its China operations to the group. However, Yahoo stopped offering its services in the country in 2013.
The financial experts point out that Yahoo’s profit for the most recent quarter fell twice compared to a year earlier, with the company’s revenue dipping just 1%.
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