U.S.-based Internet company Yahoo is planning to lay-off around 250 to 400 of its Indian workforce. According to sources, it initiated the lay-off process on Tuesday. At present, the company employs around 2,000 people in the India R&D centre.
An official spokesperson, refusing to confirm the exact number of people to be laid off, said the Bangalore office would continue to function.
An official statement from Yahoo said, “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. To this effect, we’re making some changes to the way we operate in Bangalore, leading to consolidation of certain teams into fewer offices. Yahoo will continue to have a presence in India, and Bangalore remains an important office.”
BrandSigma CEO Sharad Sharma said the developments in Yahoo must be seen in the context of R&D divisions of many MNCs moving to their headquarters. “There is a slow deflation of MNC R&D in India, and this can be seen in that context,” he said.
Yahoo, once the top-ranking web portal, has been facing stiff competition from Google and Facebook. The latest development is being seen in line with CEO Marissa Mayer’s efforts to turn around the company.It is understood that, as part of the consolidation initiated by Ms. Mayer, the India R&D centre will be shifted to the U.S., while the India office will concentrate on operations. Sources said some senior employees in India had already sounded out to shift.
The Yahoo India R&D facility was set up around 13 years ago to focus on the emerging markets and to develop solutions for the global markets. According to the company’s earlier media statement, the India centre had delivered more than 20 products across the company’s media, technology and platform portfolio. Some of them are Yahoo! Cricket, omg!, Yahoo! Video, Polyads and Predict among others.
During September Yahoo acquired Bookpadfor around Rs.90 crore.
