Game Stooge

Microsoft Pay Blunder [UPDATE]

• Scribbled on February 24th, 2009 by matt
• Filed in Industry News, WTF

[UPDATE: CNET reports that Microsoft has decided to allow any workers who were overcompensated to keep the money. The story also notes that around 25 workers were overpaid, and around 20 underpaid. See full coverage here.]

Microsoft says it made an accounting error when it laid off some employees last month and now feels the best way to correct the error is with what will likely be given the blunder of the year award…..DRUM ROLL…Ask for it back. Didn’t see that coming did you.

The software giant, which recently laid off 1400 workers, sent letters out this week to some of those former workers letting them know that their severance payouts were a bit too “generous” and respectfully requested that the former employees pay back that money, according to a report Saturday on TechCrunch.

“An inadvertent administrative error occurred that resulted in an overpayment in severance pay by Microsoft,” the letter states. “We ask that you repay the overpayment and sincerely apologize for any inconvenience to you.”

A Microsoft spokesperson confirmed the authenticity of the letter posted by TechCrunch but declined further comment, saying it was a private matter between the company and the affected people. The company declined to specify how many of these letters were sent out, and it’s unknown how much the overpayments total, but it did indicate that some laid-off employees were also undercompensated.

The letter failed to provide an explanation for the accounting error but did manage to add a threat of punishment if the money wasn’t repaid, at least in the form of a tax hit.

Let’s see here. Fire a bunch of people and screw up their paychecks and go begging for the cash back. See that embarrassing demand posted on the Internet. Priceless. Sounds like the credit card commercials right. Hey maybe Microsoft could sell the idea. Funny that the ones responsible for this are in fact the ones who kept their jobs with the company. Just thought it was a funny story.

(Originally posted at GoGamingGiant by Matt Burns.)