Feature

Microsoft’s severance clawback

The computer giant shows how not to lay off 1,400 workers

“It sounds like an early April Fool’s joke, but it’s no prank,” said Mary Kathleen Flynn in Seeking Alpha. Microsoft sent a letter to some of its 1,400 recently laid-off employees asking them to return some of their severance package. The letter apologized for any “inconvenience” caused by the “inadvertent error.” Well, “inconvenience is one way of putting it. Adding insult to injury is another.”

It only took two days after the letter appeared on the Internet for Microsoft to reverse course, said John Paczkowski in All Things Digital. And it was probably an easy call: The “cost of the PR debacle” has to be more than the $125,000, max, it overpaid those 25 employees, who each get to keep the extra $4,000 to $5,000 now.

The aborted severance clawback was a “public relations disaster for Microsoft,” said Emil Protalinski in Ars Technica. But Microsoft is also making some good moves on the long-term employment front—its “Elevate America” program aims to give IT training to up to two million Americans. With most jobs today requiring “some form of tech skills,” that could really help.

Besides, this is Microsoft’s first-ever mass layoff, said Tom Corelis in Daily Tech, so its “ask-nicely policy” for overpayments was largely untested with sacked employees. And given the “hurricane of bad press,” Microsoft probably won’t make this same mistake with the other 3,600 employees it's going to lay off in the next 18 months.

Recommended

When will inflation come down?
A crystal ball.
Briefing

When will inflation come down?

The daily business briefing: June 8, 2023
New York City wreathed in hazardous wildfire smoke
Business briefing

The daily business briefing: June 8, 2023

Will Apple's $3,500 VR headset take off?
Vision Pro headset
Today's big question

Will Apple's $3,500 VR headset take off?

Why is Riyadh going it alone on oil cuts?
An illustrated image of oil rigs and oil barrels
Today's big question

Why is Riyadh going it alone on oil cuts?

Most Popular

Ban the Bible?
Holy Bible.
Briefing

Ban the Bible?

Apple fixes its 'ducking' autocorrect problem
Girl looking down at iPhone.
duck yeah

Apple fixes its 'ducking' autocorrect problem

DOJ reportedly tells Trump he's a target of criminal investigation
Donald Trump
Famous Firsts

DOJ reportedly tells Trump he's a target of criminal investigation