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Yahoo to shut China office; 300 employees expected to be laid off

Yahoo Office

Yahoo is shutting down its office in Beijing, China, reports South China Morning Post. This move is expected to result in up to 300 job cuts, with the layoffs expected to begin by the end of this month.

Following the shutting down of all of Yahoo’s B2C services in China, including its primary website Yahoo China, its music service and email service, the Beijing office (Yahoo’s only office in the country), served as a research and development center. The report mentions that labor costs being almost double that in India, and given that Yahoo doesn’t offer any direct consumer services in China, this was the logical move.


Last month, Yahoo India laid off over half of its editorial team based in Bangalore and about 35% of its editorial staff in Canada, which together represented about 100-200 job cuts. The reasons for the layoffs were global reorganization and restructuring. At the time, one source had told MediaNama that Yahoo CEO Marissa Mayer’s focus is only on the US. “Marissa’s entire focus is the US. She doesn’t care what happens in the regional markets,” a source said. “If they lose resources in the regional markets, that’s okay for them. Regional markets don’t have as much revenue as the US market.”

Last year, Yahoo had also laid off around 300 employees from its software development center in Bangalore, India, because Mayer wanted to consolidate development operations in the US. Around two years ago, Yahoo had around 2500 people working with its SDC in Bangalore, where it had two offices. That was brought down to 600. At the beginning of last year, Yahoo had three offices in Bangalore, out of which two were shut.

Yahoo downsizing presence across Asia

Besides India and now China, Yahoo has been steadily downsizing its presence across Asia:

– In October last year, the Sunnyvale, California headquartered company had announced the shutting down of its office in Amman, Jordan, which was expected to be completed by the end of 2014. Some of the operations handled by the Amman office were expected to be transferred to the Dubai office.

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– A month later, in November, Yahoo was reportedly looking to layoff close to 100 employees across its Vietnam, Indonesia and Malaysia offices.

Also Read: Yahoo posts $254 million mobile revenues in Q4 2014

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