Updated 06:41 PM EDT, Mon, May 17, 2021

Yahoo Shutting Down its Offices in Argentina & Mexico amid Huge Restructuring

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Yahoo is downsizing its regional operations to prepare for a huge restructuring.

According to a report from TechCrunch, the company is shutting down its offices in Buenos Aires, Argentina and Mexico City. Yahoo's move, however, doesn't mean that it will be pulling out of Latin America completely. They will still conduct operations in São Paulo, Brazil and Coral Gables, Florida.

"Yahoo is focused on maximizing growth. With that in mind, we communicated to employees in Argentina and Mexico that we will be closing our offices there," a Yahoo spokesperson said, as quoted by the news outlet. "Our impacted employees will be treated with respect and fairness through this transition. Latin America is an important region for Yahoo and we will continue to invest in the people and products there. Our teams in Brazil and Coral Gables (Miami) will remain vital to the company."

Yahoo didn't say how many people will be affected by the closure, but TechCrunch reported from a source that it's less than 50 individuals. The spokesperson said that the firm is not planning to outsource its operations to third parties, which is a road that some tech companies have taken to build out and run commercial operations in Latin America. But another source of TechCrunch claimed that Yahoo is following these companies' footsteps.

The news outlet's source said that Mexico was one of Yahoo's more cost-efficient and profitable operations. Mexico's operation only had 10 employees compared to 200 in the Brazil office, but the former gained one-third the amount of revenue as Brazil.

As for the reason behind the closure, TechCrunch wrote that Yahoo "is clearing out smaller (even if profitable) operations to help reinforce the restructuring and cost-cutting points that will be made around earnings next week, the source says, where there may well be more international cuts announced as well." Brazil is considered as one of the largest and fast-growing developing markets, which means that it has more potential or at least as the foundation for the larger region, though returns could be longer to attain.

Yahoo has been downsizing operations in international markets recently under CEO Marissa Mayer's leadership, TechCrunch reported. This includes lessening staff or closing offices in China, India, and some parts of Asia, Europe, and the Middle East.

The majority of the cuts are expected to be carried out after Yahoo's announcement of its Q4 earnings next week, when Mayer and CFO Ken Goldman should provide more details on the company's recent actions, Re/code wrote.

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