Forcing employees to work in an office does not increase productivity. Do you really think all those water cooler discussions are about work? Putting people together increases the time they spend on socializing and non-work-related activities, while working from home allows flexibility, efficiency, and ensures that communication with other employees is almost, if not completely, exclusively work-related.
This is a pitiful attempt to save a dying company.
Yahoo is definitely wrong for doing this and I think that they should reconsider. Some of their employees might have medical conditions and not be able to just leave the house all of the time. This policy is very closed minded and I do not agree with it at all.
No, Yahoo is not wrong to ban its employees from working at home. Working from home can be productive in some businesses, but at its core, its a privilege. Yahoo as a company is struggling to make itself viable again. Its managers need to do everything they can to get the employees working together and on the right projects so that it can compete in today's marketplace. If being competitive means that all the employees have to come to work, then so be it. It's way better than the alternative of Yahoo going out of business.
Yahoo is a business much like any other, and because of this they are free to decide how to run their business however they want. If they want to ban working from home, then that is there choice. That also means that the employee is free to leave and work elsewhere.