Yahoo Is Laying Off Most Of Its India Engineering Office

Marissa MayerPaul Morigi/Getty ImagesYahoo CEO Marissa Mayer

Yahoo is effectively shutting down its Indian engineering office in a series of layoffs that will involve up to 500 people losing their jobs.

News of the layoffs emerged Tuesday after the Indian news site Next Big What said Yahoo would be laying off every one of its employees in the country. That proved to be untrue.

According to Quartz, about 500 employees, 3% of the company’s total headcount, will be affected by the cuts, meaning that the Bangalore software development center will essentially be shut down. Yahoo India, the company’s editorial, sales, and support unit, will be unaffected.

Employees involved in the new Bangalore layoffs are being offered five months of severance pay. About 5% are being relocated to Yahoo’s US office in California. The layoffs won’t all happen at once, either — they will come in phases until December.

Yahoo’s earnings in the previous quarter were disappointing, and the company said in its Q2 statement that growing revenue was its “top priority.”

In a statement to Quartz, Yahoo explained the reasoning behind the layoffs:

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.

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