I was a part of a startup (interClick) that got acquired before MM became CEO and our experience of the rest of the org was pockets of smart dedication drowning in a mass of serfs passively resisting the will of the fiefdoms to which they belonged.
It seemed to us that what MM should have done is broken up the fiefdoms and dismiss the feudal lords that reigned before revitalizing the suite of properties and expanding mobile/video.
If I'm a hard worker, and I see people doing nothing all day, nothing would motivate me like firing them.
eg look at people working remotely, check vpn logins, and if they weren't logged in while working remotely, ask them for a reasonable explanation (maybe they were working entirely locally, but probably not), then terminate.
Edit based on your edit: Probably not quite as abruptly as you suggest - usually you need a pattern of underperformance to fire without risking a lawsuit. But Yahoo underwent several rounds of performance-based lawsuits. I think her big mistake there was not cutting once and cutting deep - multiple rounds of layoffs are much more demoralizing than getting rid of all the underperformers at once - but hey, Monday-morning quarterbacking. We aren't the ones at the top making the call.
Or maybe I missed the firings...
(Fine-grained) surveillance breeds distrust. The moment I hear that a company I work for is aggressively using surveillance-ware to evaluate employee performance is the moment I start looking for another job.
I don't know a single person at Yahoo and I don't work there but I remember reading articles when MM implemented the new rules for telecommuting and if I remember correctly most painted the policy negatively. I'm glad to read another perspective on the topic even if it is coming from someone with only second hand knowledge.
It's obviously good to be skeptical of second hand experiences but I'm not sure they should be dismissed wholesale. I imagine part of the point of HN is to share our personal experiences. I've never worked at Boeing or Northrup but I have enough friends/colleagues who have or currently do that I can form some informed opinions on what it's like working there.