Yahoo to close offices across Northern Europe

Mon 15 December 2008 09:22, Eduard Blacquière

Yahoo to close offices across Northern Europe

The crisis at Yahoo has reached Europe. Yahoo will be closing some offices across Northern Europe. The offices in Scandinavia, Netherlands and several small ones in Germany will close as of january 1st, 2009.

I talked to Floris Bartels, representative of Yahoo Netherlands, to discuss the details of the closure of offices across Northern Europe.

The Yahoo representative ensured me that all Yahoo activities in these countries will be unchanged. Advertisers and other clients can still use the Yahoo Search Marketing advertising platform the same way as they do right now.

Just like with Google, the Europe based offices of Yahoo are basically sales offices to service the large local clients. The local offices also have a minor marketing role. From january 1st, 2009 this role will be taken over from the closing offices by the Yahoo offices in Dublin and London.

Cut expenses
The reason why Yahoo closes several offices in Northern Europe is to cut down expenses. When Yahoo released there 3rd quarter results they announced that there would be layoffs coming. Yahoo also recently sold shopping engine Kelkoo to cut costs.

But the real reason Yahoo has to close several offices in Europe is the fact that they refused the Microsoft take over bid early this year. Yahoo seemed to get away with it by sealing an advertising deal with Google, but that didn't work out as well with Google killing the agreement.

This all made it worse for Yahoo with CEO Jerry Yang stepping down recently as a result. The fact that Yahoo's head of Europe Toby Coppel stepped down seemed to be the final step for Yahoo to close some European offices.

What does this mean for the search landscape?
In some way you would think this means the end of Yahoo in Europe. On the other hand there isn't changing a lot in the way Yahoo operates in Europe. Finally it's the consumers who determine to use or not use Yahoo's servcices.

As long as Yahoo keeps adding value for consumers, they will be interesting enough for advertisers to spend their money with Yahoo. But if Yahoo can't keep advertisers satisfied, they'll have a hard time surviving in the Google dominated Europe.


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