Yahoo Inc. has announced that the company will be closing its last research center in Beijing and will exit China completely to cut down operation costs and focus on immediate goals.
The company sold its operations in China to Alibaba in 2005 and Beijing was the last physical presence they had under their direct control. While it is being said that hundreds will lose their job, a spokesperson from the company confirmed to BBC that at least 350 employees will be laid off.
"Our goal right now is to align the available resources and focus on innovating which will lead to better growth in our business. The changes are mandatory and there will be many such before the final objective is accomplished," said Yahoo in a press statement.
The employees are visibly depressed and one of them said that it is really sad news for those who worked there for years. An employment agency was already handling pamphlets and marketing jobs for those unemployed professionals right outside the Beijing office.
"I had a really good relationship with my colleagues here but now we don't have an option but to say goodbye to each other," said another employee.
Reports confirm that Yahoo's withdrawal from China has nothing to do with the censorship and restrictions in the country, but rather to cut operation costs on a global scale. The tech company have already laid off its staff based in Malaysia, India, Vietnam and other countries to keep costs under control.
Search engine giant Google opposed the censorship rules and withdrew some of its services in 2010. The game maker Zynga closed down their offices, laid off 70 employees owing to lack of income.
Moreover, local competition is much higher in China compared to any other country, according to Techcrunch.