Yahoo has trimmed some staff in India as part of an exercise to improve the quality of its research and development (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 under-performing staff in India, although both have said that the staff cuts are routine annual exercises to weed out under-performing staff. 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.
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