Abstract

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.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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

Keywords

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