Yahoo has trimmed some staff in India as part of an exercise to improve the quality of its R&D team in the country. The company has removed less than 5 percent of staff after they failed in a performance appraisal, according to an informed source. Yahoo employs 1,500 staff in India in R&D and its sales and marketing operations.
However, the company continues to hire more staff in India. While declining to confirm the staff cuts, a spokeswoman at Yahoo said Thursday that the company has doubled staff in India each year, and is likely to do so this year as well. "We continue to build a high-performance culture in India," she said.
IBM and Indian outsourcer Tata Consultancy Services have also trimmed underperforming staff in India, although both have said that the staff cuts are routine annual exercises to weed out underperforming workers. As staff costs in India increase because of shortage and competition, companies may be getting a lot tighter on quality, according to some analysts.
Yahoo announced in January plans to let go about 1,000 of its global staff in February.