Washington, Jan 26: To cope up with the global economic meltdown, internet major Yahoo! has decided to freeze salary hikes of its employees this year.
Kim Rubey, Yahoo's spokesperson based in United States said, "Based on the current economic environment and our focus on keeping costs in line with revenues, we have decided that providing annual salary increases would not be in the best interests of the company or our shareholders."
He noted that the freeze on salary hikes would would be 'in place through 2009'. The latest move came in less that two weeks after Carol Bartz took over as new Chief Executive Officer of Yahoo. She tookover the post from Yahoo! co-founder Jerry Yang.
In 2008, Yahoo!'s global headcount stood at 15,000 and of them, around 1,500 employees are in India. "This decision is consistent with our broader focus on strategically reducing Yahoo!s costs, an effort that has been underway for some time now. The decision was based on the current economic environment and our focus on keeping costs in line with revenues," Rubey said.
On Tuesday, Jan 27 Yahoo! is set to announce its fourth qyuarter and full year results. To cope up with ongoing recession many companies worldwide are holding back pay hikes. Even US President Barack Obama, soon after assuming office, ordered to freeze salary hikes for White House employees earning over 1,00,000 dollars.
In 2008 October, Yahoo! announced reduction of about 10 pc of its workforce to slash expenses.
Earlier Jerry Yang, Yahoo! ex-CEO came under fire for rejecting Microsoft's 47.5 billion takeover deal. Also the much talked-about proposed advertising deal with Google also collapsed. Appointment of Bartz, the ex-CEO of software maker Autodesk is widely expected to help boost Yahoo's business.
"There is no denying that Yahoo! has faced enormous challenges over the last year, but I believe there is now an extraordinary opportunity to create value for our shareholders and new possibilities for our customers, partners and employees," Bartz said after taking over as Yahoo! CEO.
OneIndia News (With inputs from Agencies)