The closure of Yahoo's Beijing office will eliminate 200 to 300 jobs, Bloomberg said Wednesday, quoting a person familiar with the matter.
"We are constantly making changes to align resources and to foster better collaboration and innovation across our business," Yahoo said in a statement quoted by Bloomberg.
"We currently do not offer local product experiences in Beijing but the office has served as a research and development centre," the statement said.
Yahoo did not immediately respond to requests for comment by AFP.
Analysts say cutting the cord with Alibaba leaves Yahoo with a core of assets but no clear path or mission.
In 2005, Yahoo bought a 40-percent stake in Alibaba for $1 billion. The US company ceded its China operations to Alibaba as a result.
Yahoo shut down its China email service in 2013. It was earlier embroiled in controversy when it handed authorities details of a Chinese journalist who was sentenced to 10 years in prison.