Yahoo Inc. to bring down expenses has been trimming staff worldwide. Stock has rallied over the last year over spinoff of Alibaba Group Holdings.
Yahoo Inc. is looking forward to close its offices in China; this attempt will cause 200 to 300 employees to become jobless as reported by a source close to the matter. The internet company has recently been laying off staff across the world in an attempt to amalgamate offices. On Wednesday the company told in a statement to its employees that it will shut down its office in China, which caused panic to the staff.
Till the end of the year 2014, Yahoo had almost 12,500 staff across the world. The multinational internet company has not revealed the actual number of staff that might be lay off. It nearly has 200 to 300 employees working in China. On its recent move Yahoo said, “We are constantly making changes to align resources, and to foster better collaboration and innovation across our business. We currently do not offer local product experiences in Beijing, but the office has served as a research and development center.”
The company is continuously looking for some new ways to cut off its expenditures due to rising pressure from shareholders, such as Starboard Value LP, who have expressed their concern regarding company’s expenses and insisted to adopt some cost saving methods.
Chief Executive Officer of the company, Ms. Marissa Mayer stated that the company is right now focusing on bringing some changes in staff members in order to bring efficiency even at the time when it spent on products and attempt for acquisition which added more employees. Yahoo did not have much to reflect an increase in revenue, which have ceased since the year 2008.
Shanghai Market Research managing director Shaun Rein said, “A R&D facility like this is a huge cost, and for a company as weak as Yahoo is now, it doesn’t make sense, Yahoo doesn’t have significance in China. Yahoo can’t really recruit top people and Chinese firms are not going to advertise on Yahoo.”
The human rights and lawmaker of United States have seriously criticized the officials of the company regarding the firm providing information of Shi Tao –a Journalist to the government of China. Tao was penalized for ten years in a jail.
Earlier in January, Ms. Mayer disclosed her strategy to spin off Alibaba Holdings, worth of $32 billion. A news came that Yahoo will be holding its ownership in Yahoo Japan Corporation valuing $8 billion
This attempt to cut back its office in China by Yahoo has come after various US technology firms also did the same thing. These companies include Gamemaker Zynga Inc. and Microsoft.