Yahoo downsizes engineering operations in India

Yahoo has roughly 2,000 employees in Bangalore, its largest engineering facility outside California

Yahoo Inc is reducing the size of its operations in Bangalore, India, the Internet company's largest engineering facility outside its California headquarters.

The company said in a statement on Tuesday it was consolidating "certain teams into fewer offices" in Bangalore, but that it would continue to have a presence there.

The move comes more than a week after activist investor Starboard Value LP publicly pressured Yahoo to cut what it referred to as a "bloated" cost structure.

Yahoo, a one-time Internet pioneer, is trying to revive stagnant revenue growth under the leadership of Marissa Mayer, who took the helm as Chief Executive two years ago.

Mayer has weighed layoffs in Bangalore since early in her tenure, people familiar with the matter previously told Reuters.

Yahoo had roughly 2,000 employees in Bangalore in March 2013, according to the sources. At the time, Mayer was weighing bringing certain jobs in India back to Sunnyvale, California, to unite more of Yahoo's product development at the home base, one of the sources said at the time.

"As we ensure that Yahoo is on a path of sustainable growth, we're looking at ways to achieve greater efficiency, collaboration and innovation across our business," Yahoo's statement on Tuesday said.

Shares of Yahoo were down 1.1 percent at $41.04 in midday trading on Tuesday.