Marissa Mayer made a surprise move when she abolished the company's work-at-home policy and ordered everyone to work in the office.
Mayer, named one of Fortune Magazine's most powerful women, has three top priorities.
"For me it's God, family and Yahoo in that order," she said.
Mayer who famously returned to work two weeks after giving birth is shaking up Yahoo's work force by telling its employees they can no longer work from home.
The controversial new policy is outlined by Yahoo's human resources director in a memo obtained by the tech blog "AllThingsD".
It says: "To become the absolute best place to work, communication and collaboration will be important, so we need to be working side-by-side. That is why it's critical that we are all present in our offices."
Workers currently telecommuting have until June to start working in the office or leave.
In trying to get back on track, Yahoo has now entered the debate as to whether flexible arrangements like working from home lead to greater productivity or inhibit collaboration.
Industry analyst Ginny Clarke says there are benefits to both working at home and in the office and speculates this new change at Yahoo is for the short-term.
"I think that she's probably got some internal dynamics that are unique to Yahoo that she needs to address and this could be one way to get at them," Clarke said.
Mayer is bucking the trend 9 ?-percent of workers worked from home at least one day a week in 2010.
Her decision doesn't come out of the blue since she came from Google, a company that likes the collaborative atmosphere when workers have face- to-face time.
Yahoo declined to comment on the policy but the website "Business Insider" did talk to some Yahoo employees and not all of them are upset.