Microsoft redundancy 'admin error' PR disaster

HR 'admin error' costs Microsoft dearly in terms of negative publicity

Microsoft has been left with a considerable amount of egg on its face this week, having to backtrack after asking former employees to repay part of their redundancy payments.

Microsoft is now claiming that the requests were due to an "administrative error" which meant that a number of the 1,400 workers laid off back in January were given $5,000 (£3,450) more than they should have been entitled to.

"Last week, 25 former Microsoft employees were informed that they were overpaid as a part of their severance payments from the company," Microsoft said in a statement.

"This was a mistake on our part. We should have handled this situation in a more thoughtful manner. We are reaching out to those impacted to relay that we will not seek any payment from those individuals."

Slip causes PR disaster

You can see the original latter sent out to employees demanding repayment of their redundancy online, which prompted mass outrage earlier this month.

The admin error is set to cost Microsoft around $125,000.

Far less than the cost to the company's image in terms of the negative PR generated by the slip!