Yahoo’s global footprint is clearly known around the world, and their global employee numbers are some of the highest in the tech industry. But on Wednesday, reports about them downsizing their Beijing Research Centre hit the wire, and shows that Yahoo is watching headcounts more than ever.
The move to close down the Yahoo research and development centre in Beijing, is seen as a move to consolidate jobs into fewer offices, and manage headcount. It’s 350 employees in Beijing are expected to be laid off by the end of this month, and is looking to align offices and resources by doing this.
Why Downsize In China?
Yahoo stated that they are making changes to align resources, and to foster better collaboration and innovation. By doing this, they aren’t eliminating any local product experiences, as none of that has been offered by Yahoo there in that office. It will be downsized into offices in that area, and in their Sunnyvale offices.
Yahoo had only opened this office in 2009, and is one of three offices that Yahoo runs for their research and development centres. It was to help expand and study Yahoo’s search, advertising, cloud computing, and personalized tools. It’s not sure why they are exiting this area, but it leaves 350 without jobs.
Yahoo Scaling Back Out Of China
This move to exit China in some aspects, joins other tech companies as they see China’s growth slowing. Microsoft announced the closure of factories in China, and eliminated 9,000 jobs by doing so. By scaling back, they can manage their losses, find ways to grow, and use resources they have now to help it grow.
Yahoo joins other companies like Adobe and Zynga in layoffs in the area as well. Both of those two companies laid off hundreds of people, and Yahoo is unfortunately another tech company to follow suit. China has grown quickly, but by controlling its losses, Yahoo can possibly re-enter the area again soon.
Yahoo has had success and failure in China. By laying off 350, it might be a good thing for the company, and Yahoo as a whole.