Interesting article published today in Slate Magazine, regarding some recent events around corporate cost cutting as the US economy starts slowing down. Sigh. Indeed, the economy does run in cycles, and it seems that all the indicators point to a potential recession... declining housing market, oil prices going down, etc.
However, the article makes an interesting thesis on how large corporations may be nickel & diming their employees (surprise, surprise)... citing Yahoo as an interesting case study: Yahoo has asked its 10,500 employees to either use their vacation days between X-mas and New Year this year, or take forced unpaid leave if they have no vacation days, which given the US standard 10 day vacation balance for most junior employees, has an unfortunately high probability of happening.
This is ludicrous, especially given the fact that this would only save Y! 21m $, which according to this article, is the equivalent of the combined Fiscal '06 salaries of their CEO, CFO and COO. Put that in contrast with the supposed 1 BILLION dollars that Y! is rumoured to be spending on the acquisition of Facebook (a social networking website that's the rage with college students over here), and you can understand some of the frustration in the valley. We drive by the Yahoo building in Santa Clara at least once or twice a week... and I always thought it'd be cool to work there, possibly as a Product Marketing guy some day... I'm having 2nd thoughts... as it seems that they're just like any other cie... nickel & diming their most important assets: their people.