Internet
giant Yahoo is closing its China office as part of a worldwide consolidation
aimed at cutting costs.
The
Beijing research centre is Yahoo's only remaining physical presence in the
country after it sold its Chinese operations to Alibaba in 2005.
A
spokesperson said "around 350 jobs" would be eliminated.
"We
are constantly making changes to align resources, and to foster better
collaboration and innovation across our business," Yahoo said in a
statement.
Analysis:
Martin Patience, BBC News, Beijing
The news
that Yahoo was closing its last remaining office in mainland China travelled
fast. Outside
the Yahoo research centre, an employment agency staged a guerrilla-style PR
campaign offering the sacked staff new jobs.
Many
Yahoo employees appeared unimpressed as they walked by men dressed up in
silver, alien outfits. One
employee said the news was "very sad." He added, "I had good
relations with my colleagues and now I need to say goodbye."
The move
by the internet giant, however, doesn't come as a huge surprise. Yahoo has
been rapidly retreating from the Chinese market. In 2013, it stopped offering
services to email users in China.
It's had
an often fraught relationship with the Chinese government. Controversially the
firm handed over information to the authorities that led to the jailing of two
Chinese dissidents.
But
according to reports, this closure was nothing to do with government pressure
or censorship. Instead it's been driven by the internet giant's desire to cut
its global operating costs.
Yahoo has
been struggling to maintain profit growth in the face of growing competition
from rival online search portals like Google. The
Sunnyvale, California-based firm has also been trying to adapt to consumers
increasingly using mobile devices, which attract less advertising revenue.
As a
result, Yahoo Chief Executive Marissa Mayer has made a slew of acquisitions in
a bid to diversify business and add new revenue streams. Earlier
this year, Yahoo also announced plans to spin off its stake in Alibaba, China's
largest e-commerce company, which is valued at more than $30bn.
The tech
giant also owns a lucrative stake in Yahoo Japan. Yahoo had a global workforce
of about 12,500 workers at the end of 2014.
source:BBC News
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