Tech

Why Marissa Mayer Told Remote Employees To Work In An Office ... Or Quit

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Yahoo CEO marissa mayer at the world economic forum in davos
World Economic Forum

On Friday, Yahoo human resources boss Jackie Reses sent out a memo telling all remote employees that, by June, they needed to be working in Yahoo offices.

Anybody who couldn't, or wouldn't, should quit.

Reeses wrote: "Being a Yahoo isn’t just about your day-to-day job, it is about the interactions and experiences that are only possible in our offices."

Naturally, many of these remote employees are pretty sawed-off about the decision.

So, why did Yahoo CEO Marissa Mayer make it?

We spoke with a source familiar with Mayer's thought process on the matter. Here is what that person told us:

  • Yahoo has a huge number of people of who work remotely – people who just never come in.
  • Many of these people "weren't productive," says this source.
  • "A lot of people hid. There were all these employees [working remotely] and nobody knew they were still at Yahoo."
  • These people aren't just Yahoo customer support reps. They're in all divisions, from marketing to engineering.
  • Mayer is happy to give Yahoo employees standard Silicon Valley benefits like free food and free smartphones. But our source says the kinds of work-from-home arrangements popular at Yahoo were not common to other Valley companies like Google or Facebook. "This is a collaborative businesses."
  • Mayer saw another side-benefit to making this move. She knows that some remote workers won't want to start coming into the office and so they will quit. That helps Yahoo, which needs to cut costs. It's a layoff that's not a layoff.
  • Bigger picture: This is about Mayer "carefully getting to problems created by Yahoo's huge, bloated infrastructure." The company got fat and lazy over the past 15 years, and this is Mayer getting it into fighting shape.

This source gives Mayer credit for making a very tough decision – one that her predecessors knew they had to make, but never did.

"She's turned out to have a lot of courage. She's dealing with problems no one wanted to deal with before."

We'd like to hear from more Yahoo sources. Reach nicholas@businessinsider.com.

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Nicholas Carlson was Business Insider's global editor-in-chief from 2017 to 2024, overseeing its emergence as a National Magazine Award, Emmy, SABEW, and Pulitzer Prize-winning global news organization with more than 500 journalists reaching 200 million readers and viewers each month.Before that, he was Business Insider's chief correspondent.Carlson is also the author of "Marissa Mayer and the Fight To Save Yahoo!"He was an Executive Producer of "Quiet on Set: The Dark Side of Kids TV," which, during its debut week, was the most-watched television show on any streamer and the most-watched show in Max history.His investigative reporting rewrote the histories of Facebook, Twitter, and Groupon. He also wrote the award-winning features "The Truth About Marissa Mayer: An Unauthorized Biography" and "THE COST OF WINNING: Tim Armstrong, Patch, And The Struggle To Save AOL."Longform.org named "THE COST OF WINNING" the best long-form business story of 2013.Carlson's coverage of Yahoo won Digiday's award for Best Editorial Achievement of the year in 2014.In 2015 Carlson wrote a New York Times Magazine cover story, "What Happened When Marissa Mayer Tried to Be Steve Jobs." It was a finalist for a Mirror Award for best in-depth/enterprise reporting.Carlson began his journalism career at InternetNews.com and then Gawker Media's Valleywag. He went to Davidson College. Disclosure: Nicholas is an investor in private and public companies and adheres to Insider Inc's Conflict of Interest policy, which you can read here.