Financial Concerns For Yahoo!
According to the Wall Street Jornal today...
Yahoo Inc. will require its U.S. workers to take vacation or unpaid time off the week between Christmas and New Year's, in a move that could signal concern about hitting some financial goals for the year.
The Sunnyvale, Calif., Internet company said in an email sent to employees that it will close its U.S. offices for that week. "This will allow many U.S. [employees] to enjoy guilt-free time off while helping Yahoo reduce unused vacation time," wrote Libby Sartain, Yahoo senior vice president for human resources, in an email Thursday to Yahoo workers.
"This is a decision that we have been considering for some time, and is consistent with the practices of many other companies of our scale," said a Yahoo spokeswoman. The Yahoo move was mentioned in Silicon Valley blog Valleywag last week.
Requiring workers to take time off at the end of the year can reduce a company's liability for accrued vacation and temporarily cut some staff and facility expenses.
Yahoo hasn't used the practice -- at least not in recent years -- say people familiar with the matter. Yahoo had 10,500 employees world-wide as of the end of June.
The holiday office-closing announcement followed public comments Tuesday by Yahoo executives that it expects to post revenue for the third quarter at the lower end of its projections, amid their concerns about slowing growth in spending by some online advertisers.
"Typically when companies do this, it's not a positive sign," said Scott Kessler, an analyst at Standard & Poor's in New York. "Whether it's a bad thing or not, it's unclear yet because we don't know all the details," he added.
Mr. Kessler predicted any positive impact of the move on Yahoo's finances would be minimal, saying it would depend on factors such as how many workers would have taken that week off anyway.
Written by Kevin J. Delaney