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If this isn't related to cost, what is it related to? Quality? "Consolidation" is a bit misleading if so.

Seconded on more sources needed.

Cutting employees in India instead of US or Europe is clearly not a way to reduce cost.
I don't know the salaries of Yahoo US vs Yahoo India, but please explain how cutting employees in any country isn't a way of reducing costs.
Presumably cutting down 2000 jobs in India would achieve the same cost saving as cuting ~500 jobs in US/EU.
Providing they are of equal skill, that's true. The article suggests it's not because of cost, that just leads me to ask why they would do it.
Some of the smartest colleagues I had at Yahoo were based in India. The way Yahoo worked, all interesting projects/teams were based in SNV with satellite offices working on maintenance projects and legacy stuff. So sunsetting of projects might explain this.
Wasn't yahoo eliminating remote/work from home options for its US based employees? So they realized they want to bring all the workforce to one place, and aren't getting the cost advantages of previously much lower wages afford?
Misleading headline... Why emphasise 'Everybody' in the headline when this is not the case?!

From the article: "out of 2250+ people in Yahoo SDC Bangalore, only 250 remain".

Well, if 250 people will remain (plus the "Yahoo India teams, which looks at Yahoo.in web properties [which] are untouched") then quite simply, this is not 'everybody'.

"Yahoo India is Laying Of 89% of it's workforce in India" is just as click-baity, but 100% more honest.

I think the 250 are those who manage the Yahoo.in teams. It seems pretty legit (fwiw, I don't have any 'secret' information, but the rumour all over town - I live in Bangalore fwiw )

). And yes the headline is exaggerated a bit. Hey more clicks.

That's not even correct. Yahoo Software Development Center is either laying off or transferring 89% of its workforce to consolidate its engineering. There are other Yahoo operations intact, and Yahoo is still in the process of investing in Indian startups; at least they recently acquired Bookpad. The "everybody" part is just hyperbole.
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edit: now it's back

There's over a billion people in India! Those bastards!