Yahoo! Inc is downsizing its operations at its Bangalore facility in India amid pressures to turn around its cost base to boost profitability.
Nevertheless, the company is offering jobs to more than 40% of the affected employees in the US, Bloomberg reported.
The company said it would consolidate "certain teams into fewer offices" in Bangalore, which is its second largest engineering facility outside the US. The company will continue to have a presence in the country.
"As we ensure that Yahoo! is on a path of sustainable growth, we're looking at ways to achievegreater efficiency, collaboration and innovation across our business," the company said in astatement.
"We're making some changes to the way we operate in Bangalore leading to consolidation of certain teams into fewer offices. Yahoo! will continue to have a presence in India and Bangalore remains an important office."
Bloomberg, citing a person familiar with the matter, earlier reported that Yahoo! is cutting about 400 positions in Bangalore, where it has about 1,100 staff. The person added that the move is part of CEO Marissa Mayer's effort to bring teams together to improve the quality of Yahoo's products.
In September, activist investor Starboard Value LP publicly asked Yahoo! to cut its cost structure.
Mayer, who was appointed to head the company two years ago, has been working hard to restructure the company. The internet pioneer has been looking to shore up its core online advertising business, which is facing stiff competition from Google and Facebook.
For the three months ended on 30 June, Yahoo! reported revenue of $1.08bn (£672m, €855m), down 4% from a year earlier, while its profit dropped 19% to $270m.
