The online tech company is reportedly cutting about 400 positions at its Bangalore, India, offices according to a Bloomberg report that cited an unnamed source. But in an interesting twist, it's offering more than 40% of the affected workers positions in the U.S.
Yahoo said in a statement that it will continue to have a presence in India and that Bangalore "remains an important office" but declined to provide specific details.
"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," the Sunnyvale, Calif., company said. "We're making some changes to the way we operate in Bangalore leading to consolidation of certain teams into fewer offices."
Bloomberg said about 1,100 Yahoo employees work from Bangalore.
Brooks Holtom, associate professor of management at
"What I'm reading into this is a desire to unite product development," he said. "That collaborative process is easier done face to face."
Mayer, who joined Yahoo as CEO two years ago, has been trying all kinds of initiatives to get the struggling Internet company back on track, including a string of acquisitions.
But a lot of work remains to be done.
When the company released its second-quarter earnings, Mayer said she was "not satisfied" with the results.
For the three months ended June 30, Yahoo reported revenue of $1.08 billion, down 4% from a year earlier. Profit dropped 19% to $270 million.
Yahoo is struggling with display advertising, a core part of its business. Display revenue was $436 million for the second quarter, down 8% from a year earlier. Although the number of ads sold increased about 24%, the price per ad decreased roughly 24%.