Yahoo Inc Announces Closure of its Cairo Operations by Yearend
Yahoo Inc is set to shut down its operations in Cairo, Egypt before the end of the year. The Internet firm’s surprising move is logically part of its initiatives that are aimed at revitalization of its business. It also indicated that it has already talked to its local employees regarding this decision.
In a statement, the company said shuttering the Cairo office would be part of a global effort to possibly streamline operations. It is also expected to encourage collaboration through consolidating many Yahoo operations in several locations. In the end, this measure is expected to establish a stronger global business that could be geared towards longer-term growth.
However, Yahoo emphasized that the Middle Eastern and African region is still a significant market for it. It has assured that it would not cease to serve numerous users as well as advertisers in the area. When the Cairo office is dissolved, its business operations would be carried over by offices in Dubai and Amman.
The company operates the Yahoo Maktoob portal within the region. That platform was a result of its acquisition in 2009 of Maktoob.com, an Arabic online services firm. Logically, the service would continue despite the demise of the Cairo presence of Yahoo. The company hints that the portal would not be disrupted despite its decision.
Closing the office
Yahoo did not reveal the total number of staff who would be affected by the Cairo office shutdown. But it has acknowledged that many would lose jobs in the area because of the change. It did not specify any plan to retain some of those personnel.
In a statement released by a Yahoo spokesperson, the company said every employee in the Cairo office would still be treated with fairness and respect throughout the transition process. It disclosed that it has offered separation packages to all affected employees. It also made sure that those remuneration offers would exceed requirements stated by local law.
This is not the first time that Yahoo is closing down an office in a country. Last year, it ceased operating its local business in South Korea. It was October 2012 when it announced plans to shutter the South Korean office by the end of that year. It cited intense competition and limited revenues for that decision. October could now be considered as a turning-point month for Yahoo.