Yahoo is Closing Shop in China, Hundreds of Employees to Lose Jobs
Once the top portal on the internet, Yahoo has not seen good days in the recent past. But recently, since the arrival of new age apps and features, Yahoo has somewhat faded into the background. The company is now pulling out from China where it had to shut down its web portal in 2013. This move will result in a loss of jobs of 200 employees.
The consumer side businesses of Yahoo such as the Web portal, Yahoo Music and email service has already been shut down. Yahoo’s only office in Beijing was then transformed into a research facility. Now the company is pulling the curtain down on its entire show in China by shutting down the Beijing facility.
Yahoo’s Chinese business was overseen by Alibaba group. The Beijing facility though was directly controlled by Yahoo and the company employed over 350 employees there. The shutdown will lead to massive layoffs in terms of hundreds. Yahoo has intimated the employees about the shutdown. Yahoo had laid off about 2000 employees in 2012 citing financial woes.
Yahoo’s present CEO Marissa Mayer has been instrumental in turning the company around by taking some unpopular decisions. Her first task in the office as CEO was to shut shop in South Korea. As the services were being ignored for newer services outside US, she decided to bring focus back to America. There were also several layoff’s in India, Vietnam, Indonesia, Malaysia, Singapore, and the Middle East. In total, the company has cut between 700-900 jobs since October last year.
The wages were also cited as reasons for the shutdown. Yahoo China employees get twice the salary of their Indian counterparts. Considering there are no consumer side application in the country, it made sense for the company to cut the costs there.
