Yahoo is reportedly closing offices in Vietnam, Malaysia, and Indonesia in an apparent restructuring of its international operations, a magazine covering marketing and ad industries in Asia reported Thursday.
Full closures of the offices are scheduled for the end of this year,Campaign Asia Pacific said on its website.
Yahoo opened its first representative office in Ho Chi Minh City, Vietnam’s southern hub, in 2007 and founded a limited company, Yahoo! Vietnam, in August 2008.
The tech company moved on to open a permanent office in the city in early 2010.
That office was reportedly closed in the third quarter of this year, while employees in Indonesia and Malaysia have been informed that Yahoo will be closing by December 14, according to tech-focused websiteTechcrunch.
Campaign Asia Pacific said a Yahoo spokesperson had confirmed the move.
“We have informed our employees in Indonesia and Malaysia that we’ve made the difficult decision to close the office by the end of the year,” it quoted the Yahoo representative as saying.
“This decision is part of Yahoo’s global efforts to streamline operations, which will help us execute quickly and deliver more efficiency, collaboration and innovation.”
The Yahoo spokesperson also revealed that the closure would involve layoffs, while key employees would be relocated to Singapore, which the California-based firm aims to make its key hub in Asia.
Yahoo is laying off 25 employees in Vietnam, and 50 and 15 in Indonesia and Malaysia, respectively, according to a source close toTechcrunch.
The move comes at a time when social-media brands such as Facebook and Twitter are accelerating their efforts in the same markets. Yahoo’s products and services for all these markets will continue to be supported from the regional office in Singapore.
“We are grateful to our employees in Indonesia and Malaysia for their commitment and thank them for all their hard work and contribution to Yahoo over the years,” the spokesperson added.
Yahoo is expected to pull in some US$700 million in revenue from the Asian market for 2014, whereas the figure was more than $1 billion in 2009, according to Techcrunch.
It was once an Internet giant in the eyes of Vietnamese users, with its mail, search, messenger, and blog services widely embraced by local netizens.
Yahoo’s blogging service, Yahoo! 360°, was particularly enjoyed by Vietnamese users compared to other markets, which generated tens of millions of members in 2009, according to Tech in Asia.
The American Internet firm decided to shut down that blogging service in Vietnam completely on January 17, 2013, while other flagship products for the country including Yahoo! Mail, Yahoo! Messenger also failed to compete with rivals such as Google’s Gmail, Microsoft’s Skype, and the world’s largest social network Facebook.