Yahoo Inc. is reducing the size of its operations in Bangalore, India. The company said in a statement that it was consolidating “certain teams into fewer offices” in Bangalore but it will continue to have a presence there.
There was much speculation on Tuesday that the entire Yahoo India R&D operation was being shut down, which may be an exaggeration, hence Yahoo India issued the following statement: “As we ensure that Yahoo is on a path of sustainable growth, we are looking at ways to achieve greater efficiency, collaboration and innovation across our business. To this effect, we are 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.”
For years this global brand had been building its Bangalore operations as one of its global technology centrepieces. In a radical restructuring, now, the internet company is pulling back work to its Sunnyvale, California headquarters and laying off large numbers of its employees in Bangalore.
Although Yahoo declined to talk about the numbers being downsized, but the sources in the company and others close to the company said some 300 out of the 800-odd developers were being asked to go; some have been asked to relocate to Sunnyvale. The affected employees started getting their intimations on Tuesday.
Those employees who are asked to relocate to the US but unwilling to do so have been offered a 12-month severance package and the laid-off employees have been offered a six-month severance package, according to the sources in the company.
Yahoo had over 2000 of its then 11500 employees in India, early last year. Since then, there are various pieces of work that have been pulled back to the US and the India numbers have consequently been dropping. The company no longer discloses its India headcount, however some believe that it is down to 1500 or less may be. This includes engineering staff, sales and support staff and editorial content developers. Its advertising platform team was one of the largest teams here that was scaled down and eventually moved back to the US.
Now in its latest move, other core engineering work is also being moved back to the US. Yahoo had developed core engineering capabilities for some of its key properties like Yahoo TV, Yahoo Celebrity and Yahoo Movies, sources said.
Yahoo has been struggling to improve its advertising revenue that makes up a little less that half of its overall income. In this field, other companies like Google, Facebook and Microsoft have done a much better job of it. Moreover research form eMarketer expects that Microsoft will overtake Yahoo in global digital ad share in 2014. It is seen that a succession of CEOs in this company, latest being Marissa Mayer who came from Google two years ago, has failed to stem Yahoo’s slide.
However, Yahoo’s loss is startup’s gain, where many companies like Zomato are asking the retrenched employees from Yahoo to join them. Many of them went on social media with job pitches to hire them. Many Indian start-ups are starving for Indian talent!