Yahoo! Restructures to trim “Bloated” Cost Structure; Rivals Reap Benefits



Case Code : CLHR040
Period : 2014-2015
Publication date : 2015
Subject : Human Resource Management
Organization : Yahoo Inc.
Industry :Internet/software/web search engine
Countries : India / USA
Length : 5 Pages


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Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

US-based Yahoo Inc. (Yahoo) used lay-off and downsizing as a restructuring strategy to control its bloated cost structure and trim its workforce. This case discusses one such restructuring effort in October 2014 when Yahoo laid off around 400 software engineers from its R&D office in Bangalore, India. There were various speculations on the number of employees laid off and the rationale behind this decision. Along with this, the case also highlights the influence of investors on the human resource planning (HRP) of the company. The strategic move of its competitors to exploit such massive lay-off is also discussed.


1) Comprehend the role of downsizing and lay-off as a restructuring tool of human resource planning
2) Understand how downsizing is used by the companies to reign in expenses.
3) Analyze the influence of investors on the strategic decisions of the company.


In October 2014, US-based technology company Yahoo! Inc. (Yahoo) announced that it planned to layoff around 400 engineers from its India office. These engineers were part of its Software Development Center (SDC) at Bangalore in south India, the second largest engineering development center of Yahoo...

Key words:
Lay-off, downsizing, investors, human resource planning (HRP), cost structure, Yahoo Inc.

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