"Today, Yahoo announced to employees that we plan to close our Cairo office at the end of this year," spokeswoman Sara Gorman told AFP in an email.
"This decision is part of Yahoo's global effort to streamline operations, encourage collaboration by bringing more Yahoos together in fewer locations, and build a strong global business that is set up for long-term growth."
Gorman declined to reveal how many employees it has in the Cairo office and maintained that the Middle East and Africa remain important markets for the company.
The company said it will continue to operate offices in Amman and Dubai.
The Internet pioneer that has been struggling for years to reinvent itself after withering in Google shadow reported last week that its profit in the recently-ended quarter slipped from the same period a year ago, when its coffers were swelled by the sale of shares in China's Alibaba.
The earnings figures, which topped Wall Street expectations but showed that Yahoo chief Marissa Mayer had yet to rev up the company's revenues, were released along with word that the California company would keep a larger portion of Alibaba under an amended agreement with the Chinese Internet retail titan.
Yahoo said it would sell 208 million Alibaba shares, instead of a previously agreed 261.5 million shares as the Chinese firm prepares a public offering.
The original repurchase agreement of May 2012 provided that in the event Alibaba completed a qualified IPO, Yahoo would sell up to 261.5 million of its 523.6 million ordinary shares of Alibaba, either directly to Alibaba Group or in the qualified IPO.
After an IPO, Yahoo, one of the early investors in Alibaba, has the right to sell its remaining shares.
During an earnings presentation streamed live online, Mayer highlighted hirings, acquisitions, improved products and rising user engagement instead of profit or revenue.
"It will take time for the increased engagement to translate into revenue," Mayer said. "But I am confident we are on the right track."
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