Yahoo employees staying put for now

Despite a plunge in Yahoo's stock price, employees say they're not heading for the doors.

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(Fortune) -- SUNNYVALE, Calif. -- For many Yahoo employees, it was business as usual at the Internet company's Silicon Valley headquarters this week.

Despite Microsoft's (MSFT, Fortune 500) decision to withdraw its $47.5 billion buyout bid for Yahoo (YHOO, Fortune 500) - and the subsequent 20% drop in the Internet company's stock price on Monday - many Yahoo employees say not much has changed for them. They also say they plan on staying put, at least for the moment.

"It doesn't affect us," said one engineer on his lunch break who, like other employees did not want his name mentioned. "We are focused on our work, just like we were before."

Some employees said they still believe in management's ability to execute, and that it's only a matter of time before the company's share price will bounce back.

"I don't care that the stock went down temporarily, because I'm confident that in the long run it will go back up and we'll get more of a return," said another employee. "I'm in it for the long run."

Headhunter Boris Epstein said he's made a big push to recruit Yahoo engineers this week, but that most of the people he's talked to aren't budging.

"Many of them are telling me, 'no way, I'm not going anywhere right now,' " says Epstein, founder and CEO of headhunting firm Binc. "Some people are going to want to stay put until something shakes out -- if Microsoft makes another move there could be severance or retention packages to look forward to."

Also affecting workers' fortunes is whether a Yahoo-Google (GOOG, Fortune 500) alliance emerges.

Some employees said they feel even more motivated and loyal to the company, now that the three-month-long Microhoo saga appears to be over for now. They also applauded Yahoo CEO Jerry Yang for his "transparency" throughout the ordeal.

"Although it's been a bumpy road, most of the people on my [former] team say they have faith in what management is doing and that they're excited to see what's in store for the company," said a former Yahoo executive who recently left the company for personal reasons.

Of course, there are some people at Yahoo who aren't exactly thrilled about how Yang and the board handled the Microsoft bid. It's been reported that many VPs were concerned about the decline in Yahoo's share price and what the company's next move will be. Several higher-ups have already left in recent months but that exodus started well before Microsoft made its initial offer.

"Yahoo's stock hasn't performed well for quite a while and that has made some people restless," says the former Yahoo executive. "I think many people do believe in the path currently being charted, but you have to stay the course to see the fruits. There won't be a financial upside for a long time."

That might not do it for investors -- some of whom have already turned on the company -- but for many Yahoos, that's enough to keep the "purple pride." At least until Microsoft strikes again.

"A major battle is over, but I just don't think it's finished yet," said one employee who works in the company's display advertising business. "For now, though, it's business as usual."