24 February 2009
Microsoft's downsizings have not gone unnoticed by the media. When the software giant announced it would lay off 5,000 people through 2009 and half of 2010, the media were only too happy to shine the spotlight on the company's downturn. While this was extremely bad PR for the company it was nothing in comparison to what Microsoft would do next.
Last week, a number of former employees were told that their redundancy payments were incorrect and the employees had been overpaid, many by up to $5,000. The employees were then asked to repay the money to Microsoft within 14 days.
It wasn't long before one of these letters made it online and soon the news of Microsoft's 'administrative error' spread across the web.
The publication of the letter was quickly followed by a stream of angry forum posts and letters to Microsoft and the company was soon making headlines again
Questions were raised over Microsoft's integrity in asking for money back during such difficult times as well as whether or not the company legally had the right to ask for it back. In the end, on the grounds of negative PR, Microsoft forfeited.
Realising that a more sensitive approach should have been taken to the matter, especially considering the current economic situation, Microsoft executives have decided to bite the bullet. In total the administrative error is expected to cost the company more than $125,000.
The administrative error is also through to have underpaid around 20 people who were also recently made redundant, although Microsoft has since compensated them the difference.
Microsoft is obviously keen to avoid as much negative PR as possible, especially considering that it will be laying off several thousand more people over the next few months. That said, it should have been obvious to Microsoft that this would make the press and with a little forward planning, the company could have avoided the entire saga.
Microsoft's admin error comes to over $125,000
Microsoft's downsizings have not gone unnoticed by the media. When the software giant announced it would lay off 5,000 people through 2009 and half of 2010, the media were only too happy to shine the spotlight on the company's downturn. While this was extremely bad PR for the company it was nothing in comparison to what Microsoft would do next. Last week, a number of former employees were told that their redundancy payments were incorrect and the employees had been overpaid, many by up to $5,000. The employees were then asked to repay the money to Microsoft within 14 days.
It wasn't long before one of these letters made it online and soon the news of Microsoft's 'administrative error' spread across the web.
The publication of the letter was quickly followed by a stream of angry forum posts and letters to Microsoft and the company was soon making headlines again
Questions were raised over Microsoft's integrity in asking for money back during such difficult times as well as whether or not the company legally had the right to ask for it back. In the end, on the grounds of negative PR, Microsoft forfeited.
Realising that a more sensitive approach should have been taken to the matter, especially considering the current economic situation, Microsoft executives have decided to bite the bullet. In total the administrative error is expected to cost the company more than $125,000.
The administrative error is also through to have underpaid around 20 people who were also recently made redundant, although Microsoft has since compensated them the difference.
Microsoft is obviously keen to avoid as much negative PR as possible, especially considering that it will be laying off several thousand more people over the next few months. That said, it should have been obvious to Microsoft that this would make the press and with a little forward planning, the company could have avoided the entire saga.
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