I worked for Yahoo in the years surrounding the Microsoft debacle. Let me tell you in no uncertain terms that Yahoo was the worst company I worked for.
I had very little work to do. Period. End of statement. I spent most of my time doing practically nothing except playing ping pong and foosball and getting paid for it. A lot of my coworkers and a lot of Yahoos were in the same boat. Needless to say, that once the Microsoft acquisition failed and the layoffs started happening, most of us were out of there.
On top of that, there was very much a prima donna attitude around Yahoo, with a great deal of self-entitlement. I remember a couple of threads on devel-random complaining about the lack of ping pong balls, and how that insulted us as Yahoos since it meant that management didn't trust us. Oh the humanity of not providing everyone with $2 worth of ping pong balls!
Yahoo was filled with lazy workers, and an extremely fat layer of lazy management. I vaguely remember Rasmus running a script that calculated around 70 employees per VP. As well, the internal politics at Yahoo was astounding. One of my friends worked on an iPhone app on his own free time, and when he tried to get approval, it was held up for months because people were arguing over things like color schemes, and which group should own the app. It was pathetic.
I like what Marisa Mayer is doing. I think by getting rid of some privileges like remote working, it is enforcing a discipline that hasn't been at Yahoo, at least during the years that I was there. Showing up to work is a small price to pay for being paid a great wage and having the opportunity to work for what will hopefully become a first class company again. People need to show up and work and interact with their peers, instead of hiding at home and people not knowing wtf is going on with them. Sure, some people will quit, but quite bluntly, anyone worth their salt would have already left Yahoo by now. Anyone who is happy working in the environment that was Yahoo over the past 5 years is not an A player by any stretch, so it's safe to assume that you can afford to lose them.