Yahoo Expands Maternity Leave After Banning Telecommuting

Source: Lisa Fernandez and John Schuppe / CNBC

Yahoo CEO Marissa Mayer, who sparked an uproar and hurt her image as a working mom when she banned telecommuting two months ago, is now offering employees generous new family leave benefits.

Under the new policy, both mothers and fathers can take up to eight weeks of paid child leave, with benefits, each time they have a new child. New mothers are also entitled to an additional eight weeks of paid leave after pregnancy.

Mayer’s decision, which brings Yahoo in line with leading Silicon Valley titansGoogle and Facebook, could help repair the damage as she works to turn around the struggling media giant.

But it doesn’t only make sense from a public relations standpoint, observers said. The new policy could fit into a broader corporate strategy to attract and retain more talent and ultimately improve Yahoo’s financial performance.

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  • With most of their employees working in California, this policy is long on positive PR value and short on costs.

    All mothers are already eligible for paid leave benefits through the State disability program, and fathers have six weeks of pay from the State family leave program. The Yahoo program extends these benefits by two weeks.