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Yahoo India SDC lays off employees because Marissa Mayer wants to consolidate product dev in the US

yahoo-businessA couple of days ago, Yahoo confirmed layoffs at its Software Development Center in India, although there was limited information on exactly how many people have been laid off and why. According to multiple sources MediaNama spoke with, this isn’t a sudden move, but a part of a broader strategy to consolidate product ops in Sunnywale. Here’s what we’ve learned:

Around two years ago, the Yahoo SDC had around 2500 people working with its SDC in Bangalore, where it had two offices. Most of these were permanent employees, and some were contractual. As of last month, over a two year period, strength had been reduced in the India SDC to around 900 people. This month, it has fired around 600 people, around 100-150 of which are contractual. At the beginning of this year, Yahoo also had three offices in Bangalore, of which two have been shut. One in Bagmane Tech Park in Bangalore has been shut, and another at Sunriver has been closed. The office that remains operational is in Torrey Pines, Embassy Golf Links.

From what we’re told, the Yahoo SDC performed two functions: product development and engineering support. Jobs related to product development are being moved to Sunnyvale since Yahoo wants to consolidate product work in Sunnyvale instead of outsourcing them to India, essentially as a move that CEO Marissa Mayer believes will enhance operational efficiency in product development. Remember that Mayer also instituted a no-work-from-home policy for Yahoo. Those who will remain in India will provide engineering support. Note that what was initially reported, of 2500 people being laid off and Yahoo India being shut, was inaccurate.

Also note that Yahoo India is yet to respond to an email we sent for comments yesterday. We’ll update in case they respond.

Outside of this, over the past few months, HR head Ani Banerjee and Legal head Amitabh Das have both left the firm. The Economic Times also reports that Yahoo India R&D Head Hari Vasudev, among other senior executives, have been asked to move to the United States. Amit Dayal, VP of search and marketplaces, has already shifted there. Hiring stopped a year ago, as per the report.

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