Yahoo freezes salaries as part of recession recovery plan

Last week, Google announced the cutting of several positions as well as the closing of numerous applications. This week, Yahoo pronounced that it too will need to take major steps in order to get through the worldwide economic crisis.

To start, the Internet giant plans to freeze all employees’ salary raises. Throughout the year, none of their employees will receive a pay raise in hopes that this will help keep the company fiscally sound. This is the first time in its history that Yahoo has taken such measures. Yahoo also had to hand out some pink slips: since December, the company had laid off over 1500 employees. Management hopes that these steps will be enough to keep Yahoo financially stable.

However, the new CEO of the company will not be hurting financially this coming year. Carol Bartz received a 19 million dollar salary package along with the possibility of earning as much as an annual 4 million dollar bonus on top of her base salary. This big pay day certainly didn’t sit well with everyone, especially the employees that were notified of salary freeze.

Read [CNBC]