Yahoo Is Closing Its Office in China - and In Most of Asia

Strategic repositioning - or retreat?

Yahoo appears to be exiting from Asia just as everyone else in the world is seeking entree.

Having sold its stake in Alibaba following its spectacularly successful IPO, Yahoo may now have the freedom to pursue the pragmatic path without worrying about the diplomatic fall-out from Beijing where it had 350 employees.

The reality is that Yahoo's strengths and potential growth are best optimized in the US and, to a lesser extent, in Europe. Being everyone's fifth choice in Asia actually means being no one's choice at all. Sometimes in international business it just better to accept the facts and save what assets you have for a more promising opportunity. The lingering question is whether any enterprise that cannot make a go of it in Asia can make a go of it anywhere. JL

Jon Russell reports in Tech Crunch:

One of Marissa Mayer’s first moves as CEO was to exit South Korea. Last year, layoffs were made in India, Vietnam, Indonesia and Malaysia, and Singapore. The company also downsized its presence in the Middle East.
Yahoo is bidding adios to China with the closure of its research center in Beijing — its only location in the country — as SCMP first reported. Hundreds of staff are expected to be laid off.
“We are constantly making changes to align resources, and to foster better collaboration and innovation across our business. Today we informed our employees based in Beijing that we will be closing our office there,” Yahoo said in a statement.
The Beijing office originally ran Yahoo services in China, but with all of its consumers-facing activities in the country now shuttered — including its web portal, music service and email — the office effectively become a research center. Sources at the company told SCMP that, with wages two times higher in China than India and no specific services in China, the presence wasn’t particularly logical.
Alibaba manages Yahoo’s operations in China, but the Beijing office was notable for being Yahoo-controlled. Yahoo employed 350 staff there. It hasn’t said exactly how many staff will be laid off, but it seems likely that hundreds can expect to be made redundant.

“We will be consolidating certain functions into fewer offices, including to our headquarters in Sunnyvale, California, US. Our impacted employees will be treated with respect and fairness through this transition,” Yahoo added.
One of Marissa Mayer’s first moves as CEO was to exit South Korea, and, with many of its legacy services fading in popularity outside of the U.S., she is increasing the focus on the U.S., and cutting expenses from elsewhere. Last year, layoffs were made in India, Vietnam, Indonesia and Malaysia, and subsequently Singapore. The company also downsized its presence in the Middle East.