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Yahoo! may lay off staff in Bengaluru to scale-down India operations

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NEW DELHI: Yahoo is reducing the size of its operations in Bangalore, including possible layoffs. The operations in Bangalore are the largest engineering facilities of the Internet company outside its California headquarters.

The company said, in a statement, that it was consolidating “certain teams into fewer offices” in Bengaluru but it would continue to have a presence there. It is learnt that 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 CEO Marissa Mayer, who took over two years ago. According to the sources, Yahoo had roughly 2000 employees in Bengaluru in March 2013.

One of the sources said that at the time, Mayer was considering the option of bringing certain jobs from India back to Sunnyvale, California, to unite more of Yahoo’s product development at the home base.

“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,” Yahoo’s statement said.

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