Yahoo Decides To Close Down Dubai Offices
Yahoo Middle East division has decided to shut down its operations in Dubai by April 2016.
Yahoo Inc. is going through a very rough patch in recent times and this has hampered its already damaged and declining progress in the market as well. The company is in a crucial stage and is deciding whether to sell its core business or not. On top of that, sources have confirmed that the internet company has decided to close down its Dubai office by April 2016. Gulf Times reported that the Middle East division of Yahoo will part its way with the Dubai Office next year.
The closing down of its Dubai office will result in at least 50 job cuts as it stands now. It seems as the company is now trying to streamline its operations in the foreign country considering its poor condition in the market. Yahoo's Middle East launched the Dubai outlet back in 2009 when the company was considered as the dominating and largest social media network in the region through Maktoob.com. It invested nearly $164 million to become the largest social network in the region but with time it started to lose its charm and has little or no presence now.
The company’s influence in the internet world was massive at that time therefore it sought to further increase it in the Middle East region. But with the intense competition that the new social networks such as Facebook, Google, and Twitter brought, Yahoo failed to keep up with the market hence it resulted in ‘failing to grow its revenues noticeably.’
It is believed that the company previously laid jobs in the beginning of the year which resulted in a reduction of its headcount by half for its Dubai office. It further bid farewell to 50 employees but announced that it will keep running and operating in the region.
Gulf Time also reported that Yahoo Middle East division has shut down its other operational offices in the region including Amman and Cairo. Regardless of these decisions, the spokesperson of Yahoo stated, “We will continue to provide our suite of consumer services in Arabic and English and our advertising inventory through Yahoo marketplaces and other advertising exchanges.”
The performance of Yahoo is quite poor in the market. It is believed that the search revenues of the company have noticed a major downfall as it fell by 13 percent year over year. These figures had an impact on total revenues as well which declined by 8 percent year over year as of last quarter. Yahoo decided to opt for various cost cutting strategies recently.