It is trying to revive stagnant revenue growth
San Francisco: Yahoo Inc is reducing the size of its operations in Bangalore, India, the Internet company's largest engineering facility outside its California headquarters. The company said in a statement on Tuesday it was consolidating 'certain teams into fewer offices' in Bangalore, but that it would continue to have a presence there.
The move comes more than a week after activist investor Starboard Value LP publicly pressured Yahoo to cut what it referred to as a 'bloated' cost structure. Yahoo, a one-time Internet pioneer, is trying to revive stagnant revenue growth under the leadership of Marissa Mayer, who took the helm as Chief Executive two years ago.
Yahoo had roughly 2,000 employees in Bangalore in March 2013, according to the sources. At the time, Mayer was weighing bringing certain jobs in India back to Sunnyvale, California, to unite more of Yahoo's product development at the home base, one of the sources said at the time. According to media reports, Bangalore has around 800 developers, of which, around 300 employees will be asked to move out. Yahoo! is restructuring internally and is creating jobs back to its Sunnyvale, California, headquarters. This will affect the Indian sector and the move will layoff large almost 300 employees in its Bangalore office. Yahoo has offered a 6-month severance to those asked to leave. Some who declined the offer to relocate to the US headquarters will be offered a 12-month severance. The entire Yahoo India R&D operation will be shut down. Yahoo will continue to have its presence in Bangalore.
"As we ensure that Yahoo is on a path of sustainable growth, we're looking at ways to achieve greater efficiency, collaboration and innovation across our business," stated Yahoo.
( Source : reuters )
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