About 400 employees working out of Yahoo! Inc. (NASDAQ:YHOO)’s Bangalore office received the pink slip earlier today. A statement released by the company attributed the changes in the Bangalore operation structure to Yahoo’s goal of achieving better innovation and efficiency. It also clarified that the layoff does not signal an end to Yahoo’s presence in India.
This layoff, that took place in Bangalore, is the largest such event since the company’s 2012 global retrenchment which saw over 2000 employees being asked to leave the company. Yahoo! Inc. (NASDAQ:YHOO), however, declined to comment or provide an official estimate of the number of layoffs planned.
The Bangalore office houses employees of Yahoo! India, which looks after sales and support units and Yahoo Software Development Center (SDC), which takes care of its global engineering outsourcing needs.
Layoffs expected to continue till December
People with knowledge of the matter claim that this is only the first in a series of such shake-ups and will be carried out in a phased manner till the end of the year. This is no sudden development and has been going on in the background for a while now.
Yahoo! Inc. (NASDAQ:YHOO)’s efforts to raise productivity and improve sustainability with seamless operations are citied to be reasons for the layoff. The company has been seeing consistent cuts in workforce accompanied by mergers and acquisitions ever since Chief Marissa Mayer took over.
More opportunities in store for axed employees
The employees who are being let go have received ‘golden handshakes’ – severance packages amounting to around five months of pay. This varies depending on the seniority of the employees and some are said to have been offered positions in Sunnyvale.
Most Yahoo! Inc. (NASDAQ:YHOO) employees who have received the push do not have to worry though as several tech firms have started expressing interest in hiring them within hours after the news came out.