The US based search engine, Yahoo announced that they will be shutting down their presence in China by closing their offices and thus laying off around 2000 people in China.
Bloomberg reported that this will cost around 200-300 jobs in China due to shutting down of presence of Yahoo in China.
The California-based firm’s move contrasts with other internet companies, which are courting the world’s biggest online population despite authorities blocking their products.
Twitter recently announced opening an office in Hong Kong while Facebook’s founder Mark Zuckerberg said they have plans to open a research center in Beijing.
The official statement fro the Yahoo said,
We are constantly making changes to align resources and to foster better collaboration and innovation across our business,We will be consolidating certain functions into fewer offices, including to our headquarters in Sunnyvale, California.
Yahoo will have its presence in China through Alibaba, the e-commerce giant in China.
The decision follows Yahoo’s announcement in January that it will spin off its stake in Chinese e-commerce giant Alibaba, which last year listed on the New York Stock Exchange in a record offer.
Yahoo brought 40% stake in Alibaba in 2005 and the Yahoo ceded its stake when the e-commerce giant Alibaba was listed in New York Stock Exchange.
Yahoo shut down its China email service in 2013. It was earlier embroiled in controversy when it handed authorities details of a Chinese journalist who was sentenced to 10 years in prison.