Internet giant Microsoft is reportedly considering setting aside $1.5 billion in order to retain Yahoo! staff if its takeover of the search engine provider goes ahead.According to details of a lawsuit filed by shareholders against Yahoo! in February concerning pension funds, Microsoft will use the money if it is successful in its bid for Yahoo!.
During a conference call hearing on March 24th, a Yahoo! lawyer said that Microsoft had "earmarked $1.5 billion for employee retention at Yahoo!", the Wall Street Journal reports.
The legal case concerned allegations that Yahoo! breached its duties by not responding in good faith to Microsoft's acquisition offer.
Initial discussions concerning the $1.5 billion staff retention plan were said to have taken place in a communication between the general counsels of Yahoo! and Microsoft.
A Microsoft spokesman stated: "Microsoft is not commenting on the suit or anything related to it."
Meanwhile, in a staff email sent in February, Kevin Johnson, president of the Microsoft platforms and services division, commented, "There's no question we will dedicate significant rewards and compensation to Yahoo! and Microsoft employees."
In January of this year, Yahoo! revealed it had let go of more than 1,000 workers, reducing the company's total number of personnel to around 13,200.
The reductions were said not to have affected the areas of the business that support its "critical growth initiatives".
