Yahoo! Inc (NASDAQ:YHOO), Internet’s leading and veteran company has decided to layoff 500 employees in India because it is closing down its software development center. The reason that was told to the media was that Yahoo! Inc (NASDAQ:YHOO) wants to consolidate the teams in Bangalore into fewer offices. Because of this move, a large number of employees will be laid off in batches until the month of December.

Indian sector will still have its sales, editorial as well as support operation functions. Senior executives won’t lose their job as they were asked to shift to the U.S office in California. The R&D head and search and marketplace executive, among others, will shift to the U.S. which is almost 5% of the office, which was shut down. Yahoo! Inc (NASDAQ:YHOO) had ventured to India in 2002 and established itself as one of the leading Internet firms in the country.

Other corporations followed suit but India was Yahoo! Inc (NASDAQ:YHOO)’s second largest R&D center outside the United States unmatched by peers, which had moved to India. Yahoo! Inc (NASDAQ:YHOO) roped in Google Inc (NASDAQ:GOOGL)’s former executive to turn the tables for them back in 2012. Since then there has been no looking back. With her leadership Yahoo! Inc (NASDAQ:YHOO) ventured into Tumblr, mobile analytics firm Flurry and news aggregator Summly.

Analysts have pointed out that Yahoo! Inc (NASDAQ:YHOO) isn’t the only company to have moved out of India in order to cut costs and improve their ailing position. Google Inc (NASDAQ:GOOGL), Broadcom and Texas Instruments – all shifted from India at some point. The former CEO of Yahoo! Inc (NASDAQ:YHOO) India R&D said that the shift is happening because of the changing policies, the political scenario of the country, the perception of people about the Silicon Valley and other unforeseeable factors, which are affecting the revenue stream.

It is being reported that around 500 people lost their jobs in this closure move by Yahoo! Inc (NASDAQ:YHOO). Technology specialists in India speculate that it’s not a good sign for India as large corporations are backing out from the country. The lack of specialist teams could adversely affect the technology scenario in India and instead of improving their condition Yahoo might deteriorate it. The employees who were fired are receiving five months of severance pay.

Employees believe that the cut-down will continue till the end of this year and more jobs could be lost if another department decides to close down. Yahoo! Inc (NASDAQ:YHOO) in their defense said that they’re on a course for a better future, with greater efficiency. The success of the company and better results are their top priority. To achieve that this move was essential as Yahoo! Inc (NASDAQ:YHOO) is planning to make smaller teams that’ll work in fewer offices while the main team-members will shift to the HQ in the U.S. The total headcount, which the company will hit, is estimated to be around 3% of the entire company and the engineering department will be merged with teams existing in other offices.

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