Yahoo! announces layoffs and office closing in China
The end is nigh for the Yahoo! research center in Beijing, the company said last night. The closing will involve the loss of between 200 and 300 jobs (don’t they know the exact number?).
The impact on the company will be minimal as the cuts represent only 2 percent of the companies headcount, and few people can explain what the Chinese office was for to begin with, being as Yahoo’s presence in China is minimal. But many in the tech industry see the layoffs an indictment of the way CEO Marissa Mayer is running the company.
The Street’s Eric Jackson said “Yahoo! has no brand recognition in China today and no market share. It has failed as a brand in China for more than a decade, despite its highly successful investment in Alibaba 10 years ago. So a good question to raise is why were 300 people working for Yahoo! in China?”
The company apparently agreed. A company statement put it this way: “Today we informed our employees based in Beijing that we will be closing our office there. We currently do not offer local product experiences in Beijing but the office has served as a research and development center.”