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Tech Watch | InfoWorld Staff » Yahoo imposes unpaid winter break

September 26, 2006 | Comments: (0)

Yahoo imposes unpaid winter break

Yahoo employees looking for a good excuse not to visit the in-laws in Bumpass, VA this holiday season won't be able to claim they'll be stuck at the office.

First revealed on Valleywag, Yahoo has told its 10,000-plus employees that it's closing down its U.S. offices for the week between Christmas and New Year's and that workers are required to burn unused vacation time for the duration.

According to the internal memo sent around to Yahoos, those who have the vacation time accrued will automatically have it docked from Dec. 26 through Dec. 29. Those who don't are permitted to borrow future vacation days.

Following are excerpts from the memo:

"This makes good business sense and is common practice for many media and technology companies during what is traditionally a quiet work week. ... This will allow many US Yahoos to enjoy guilt-free time-off while helping Yahoo! reduce unused vacation time. ..."

"Taking a little time-off during a work week when so many of our partners and advertisers are also closed is the prudent thing for Yahoo! to do. Please contact your manager or human resources business partner for additional information and please enjoy the time off!"

Yahoo has since confirmed the accuracy of the memo, according to AP: "Yahoo spokeswoman Joanna Stevens confirmed the e-mail's authenticity, as well as the company's closure plans. 'This will make sure everyone has time to recharge their batteries,' Stevens said."

The move is likely indicative of the stiff competition that Yahoo faces in the race among search engines for online ad revenue. Stevens described the savings of the forced break as "minimal."

So here's my two cents on the subject: If the savings are minimal, why bother? Yahoo is undoubtedly frustrating a lot of employees by imposing this vacation on them -- particularly those who don't really want or need time off between Christmas and New Year's.

Maybe Yahoo should have made it optional, encouraging employees to take time off for the good of the team. Or perhaps the company could have offered a little incentive. But dictating to employees how they're going to use their hard-earned vacation time, then trying to frame it as some great benefit, doesn't strike me as an optimal HR or managerial manuever.

Plus when companies start making sudden and rather unorthodox budget cuts like this, you know that at least a few employees are going to start updating their resumes, and some stockholders might be a little less enthusiastic about your company's future.

What do you think? Was this a prudent move on Yahoo's part? How would you feel about getting unpaid vacation time during the last week of December?

Posted by Ted Samson on September 26, 2006 10:43 AM


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I think it's a bad idea. If it's a mandatory break, how is that different from a one week layoff? If the state allows it I would try to collect unemployement for that week.

Posted by: Rick at September 26, 2006 12:42 PM

I think Yahoo should call the "time off" what it is - a forced shutdown. Why try to sugar coat the truth? It sounds disengenous - and who would want to work for a company that isn't transparent - at least with their employees? I would not be happy -I would want to use the vacation I earned when I wanted to. Like the article said - if the financial impact is minimal - why do it? Ahhh, that's right - so their employees can recharge their batteries - so benevolent of them.

Posted by: Suzanne at September 26, 2006 10:51 PM

I think a lot of employees at Yahoo! will start updating their resumes. Yahoo! should have tried to save money in different ways and that shouldn't be by trying to kill the goose who lays the golden eggs. This way they are hurting all their employees the same way, rather than just getting rid of the fat or is this a precursor of doing just that?

Posted by: Dave at September 26, 2006 11:19 PM

This is terrible. If Yahoo! is trying to attract talent away from their competitors (Google and MSFT specifically), this is not the way to do it. I would be disappointed if the market didn't react poorly to this "innovative" cost saving measure.

Posted by: Dean at September 27, 2006 06:32 AM

Is anyone productive during that period of time? The staff that have not taken vacation are probably taking long lunches and wandering the halls looking for someone to talk to. Couple of days forced vacation when Yahoo is fighting for it's existance, not that big of a deal.

Posted by: Sean Roberts at September 27, 2006 05:01 PM

"those who have the vacation time accrued will automatically have it docked from Dec. 26 through Dec. 29. Those who don't are permitted to borrow future vacation days."
" How would you feel about getting unpaid vacation time during the last week of December?"

You have completely misrepresented what is happening. It is not unpaid vacation. It does not save Yahoo much money. It forces everyone to do something else for 4 days.

Posted by: Larry at September 28, 2006 06:28 AM

What babies! I work for the IT arm of a large aerospace company, and we have to shut down those days because our local worksite does. We have the same rule - use vacation, borrow some,or no pay. And to "sweeten" it, if you planned on those days off, you may then be called in for a year-end hot assignment at the last moment- when you didn't plan for it! This has been done for a few years and people don't quit for it, we just "suck it up" - its the new age of internal IT staff. Yahoo folks have to learn that the days of "me me me!" are ending. The business is changing, now get back to work!

Posted by: joe at September 28, 2006 11:35 AM

I really don't understand the reasoning behind the "time off" to begin with-- I don't even really see how it's that beneficial to Yahoo. I wonder if any Yahoo employees will have the energy to file a lawsuit.

I'm also curious as to how much paid vacation yahoo employees get-- that could sway my opinion either way.

Posted by: Shannon at September 28, 2006 12:31 PM

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