According to the NextBigWhat, Yahoo’s Bangalore software development center will be laying off nearly all of its workers and shuttering the entire operation. Supposedly, only 250 people will remain, many of whom will be given an option to move to the company’s Sunnyvale HQ in the US.
While no official figures about layoffs or timeframes were given by Yahoo, the rumor states that they are all to be given the axe on November 7th, and that most of them will be getting five to six months of severence, which should hopefully give them enough money and time to find new jobs. If not, maybe it will give them enough start up capital (if they band together) to start a new company of their own. The article mentions that this doesn’t appear to be part of any Yahoo cost-cutting measure but rather a move by the company to consolidate its development centers.
Either way, Yahoo is not the thriving company it once was and there’s no doubt that these cost savings from closing the Bangalore development center are going to reflect positively for the company in the future. The real question is how this will affect the company’s ability to execute in the future and whether or not they really did need this 2,250 person development center. They also managed to catch wind of rumors saying that it was only 600 people and that those people were mostly engineers, which may also be true. However, Yahoo did issue them the following statement:
“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.”
So yes, there is going to be some form of downsizing at Yahoo in India’s Bangalore offices, we simply don’t know whether to believe the entire staff or just 600 and that’s why this is still a rumor.