Things have again become spicy in the world of Microsoft Corp. (NASDAQ: MSFT). Reports are circulating that Microsoft miscalculated the severance payouts to some of the approximately 1,400 employees that the company recently laid off.
According to CNET News, Microsoft Corp. has sent out letters requesting a return of funds from those former employees who received apparent overpayment of severance benefits.The report also indicates that some of the laid off workers may have received severance underpayments.
The PR implications here are ugly. First, simply bringing up the subject of laid off employees is muddy water that most employers would rather stay out of. Next, consider the impression this gives of kicking people when they're down. Then, add a vision of buffoonery when a tech company fails to issue accurate checks while no doubt using its own accounting software.
Imagine the awesome potential here for some hot shot, wet-behind-the-ears lawyer kids to do some pro-bono work. I envision them fighting reclamation of these funds, in exchange for the incredible exposure such litigation could provide.
The amounts of these severance mistakes must be astoundingly large. Either that, or nobody over at Microsoft headquarters ever stopped to do a cost-benefit analysis regarding the subtle costs of pursuing these errant funds. In either case, this situation is a serious public relations blunder for Microsoft Corporation. Yes, it's just a simple accounting error on its face, but all the Microsoft haters out there, and there are a lot of them, have just been given a real sweet handle.
Update: February 24, 2009
It has been reported that Microsoft Corporation has reversed it's decision to take back it's severance over payments. Associated Press quoted Lisa Brummel, Microsoft's senior vice president for human resources as stating: "I decided it didn't quite feel right,"
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Reader Comments (Page 1 of 1)
2-24-2009 @ 12:06AM
bjbtekac said...
They must have been using vista. That will screw anything up.
2-24-2009 @ 12:07AM
QuinGood said...
How much money are they talking about?
Does anyone know?
2-23-2009 @ 8:51PM
QuinGood said...
How much money are they talking about?
2-24-2009 @ 12:07AM
Dana said...
STEVE PLEASE HELP THESE PEOPLE OUT AND LONE THEM ONE OF YOUR OLD PC,
APPLE YOU CAN DO IT!
2-24-2009 @ 12:09AM
Hoxsie said...
Gee.. I thot Miscrosoft was an expert in security ... shouldm't they have secured their accounting verifications?
2-24-2009 @ 12:11AM
tdrnca said...
well hey ... lets reward them next quarter with so bailout money. Plenty tho so they can give themselves bonuses too.
2-24-2009 @ 12:12AM
Brandon said...
Well, since ole Stevie boy can give 3rd world countries loads of money he needs to let these peeps keep theirs! By the way this would make a great "Apple Vs. PC" commercial, LOL!
2-24-2009 @ 7:59AM
BILL said...
WHILE BILL GATES TALLYS UP HIS MILLIONS HE WANTS TO MONEY BACK FROM THE PEOPLE WHO CONTRIBUTED TO HIS FORTUNE. GREED HAS AN UNGLY FACE WHEN YOU GET TO SEE IT! THESE PEOPLE NEED EVERY PENNIE TO GET BY IN THESE DAYS AND HOPE TO GOD THEY FIND ANOTHER JOB THAT WILL PAY SOME CLOSE TO WHAT THEY NEED TO BREAK EVEN, AND THE MONSTER OF GREED HAS IT'S CLAWS OUT TO TAKE ANOTHER BITE OUT OF THIER ALREADY SAD SITUATION. BILL GATES HAS THE MONEY TO HIRE THE BEST OF LAWYERS,
WHILE THE FORMER EMPLOYEES DON'T AND CAN NOT AFFORD TO FIGHT THIS TYPE OF BATTLE. ONLY A LAW SUITE WILL OFF SET THIS IF THEY WIN!THE AMERICAN NIGHTMARE IS AS TRUAMTIZING AS THE AMERICAN DREAM!
2-24-2009 @ 1:36AM
ycav4424 said...
Ole stevie is going to have to go around the world to collect his money. Thats what he gets for hiring all of the H1B low wage employees that he went to congress to give him more of.
2-24-2009 @ 1:36AM
keithstone9 said...
Fxck Microsoft....keep the money !!!! Let this be a payback to Microsoft for Vista. lmao
2-24-2009 @ 11:22AM
Michelle said...
I can't help but laugh at all these ignorant people going off about Bill Gates and this matter. Apparently, they're too stupid to know that Bill Gates hasn't been a part of running Microsoft since last summer and isn't even an executive there anymore (pssst he makes little to no decisions!) And yet, all these people are going on and on about his "greed" behind MicroSoft initially asking for this money to be returned! I love ignorant who spout off at the mouth without one single clue of the facts! Best entertainment around...
2-24-2009 @ 11:22AM
ycav4424 said...
Michelle----is full of crap. Stevie sticks his head in the office just long enough to make these stupid decisions. That is when he isn't trying to screw real Americans out of money by telling congress to help him with more H1B visas.
2-24-2009 @ 11:21AM
chuckvanbuskirk said...
I think they ought to keep the money to finance and build a missle system to destroy microsoft. Vista has AssF*cked me so hard that I can hardly walk any more and it burns when I pee.
2-24-2009 @ 4:43AM
Jeff said...
I just wish all of you experts could spell and learn how to write sentences.
2-24-2009 @ 11:21AM
bubbles said...
I wouldnt give them back a dime since they laid the people off. its there error so they have to learn to live with it.
2-24-2009 @ 11:20AM
bocavert said...
COMPUTER operator error! Or is it just a petty suit getting back ? Taking care of their friends, and enemies?
2-27-2009 @ 12:08AM
cynwest222 said...
I am not a fan of Microsoft myself, but isn't
this actually a morale issue that begins with our own integrity and principles?
How can we hold large corporations accountable for their behavior if we don't hold ourselves accountable for ours?
If you noticed that your check was short money you would surely say something? If you weren't laid off and received extra money in your check, wouldn't you ask why?
Regardless how you feel about a company and its products, you have a choice on doing business with them.
These people might have been laid off, but many times companies will rehire people they have laid off.
I would have to believe that severance packages were discussed with their employees so they were aware how much they were getting.
When we lose our integrity and morales as a nation and let greed get in our way is when we as a nation self-destruct. If we want to hold people accountable, we must first start with ourselves.
And BTW- I am a Mac person:-).