Yahoo! Inc. (YHOO) SDC India Has Only 36% Of Its Previous Strength

MediaNama spread the news that Yahoo! Inc. (NASDAQ:YHOO) commenced a firing bonanza in which some 1,600 people out of 2,500 have been laid off. Only this month Yahoo! Inc. (NASDAQ:YHOO) SDC India got rid of about 600 employees, out of which 450 – 500 were permanent workers. Marissa Mayer’s plan is to consolidate all the product development in Sunnyvale, California.

This is obviously part of broader strategic moves performed by the company in order to save or attain some profitability. However, it’s unclear whether this is a sign of resignation from Yahoo! Inc. (NASDAQ:YHOO) or a short lived budget cut that needs to be undertaken for the future perspectives’ sake. The whole image resembles a desperate attempt of putting the business back on track and it hasn’t worked so far.

The Indian branch will not be closed completely as the remaining employees will be providing engineering support for the American product developers. Hopefully the latter group of specialists will be more successful in bringing Yahoo! Inc. (NASDAQ:YHOO) the competitive edge that it has been looking for. But it seems like a mission impossible for the team as the company faces severe competition in its core products with companies like Google Inc (NASDAQ:GOOGL) and Microsoft Corporation (NASDAQ:MSFT), which have a market capitalization 10 times greater than the tech dwarf’s value.

Numerous analysts and reports suggested the company to just return shareholders their investment and silently leave the IT world without the need of throwing good money in an attempt to save what’s meant to be doomed. Probably, Marissa Mayer has a better understanding of the situation and she foresees a turnaround in the upcoming future. The consolidation of power could be Yahoo! Inc. (NASDAQ:YHOO)’s salvation, but it need to be undertaken as fast as possible because competition is too strong to forgive time wasted on marginally effective strategies.

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