Microsoft Says Laid Off Employees Can Keep Cash Advances

Cash advances no more

Microsoft makes money management software.

Last week, Microsoft issued a letter asking employees to pay back over-payments in severance packages within two weeks, as though they were cash advances.

Microsoft’s message today: never mind.

Whining works?

When I was a child, my parents tried to teach me that whining and temper tantrums didn’t work. However, it seems that when adults make enough noise on the Internet, it gets results. According to guardian.co.uk:

Despite the fact that the company initially requested that they return the extra cash, however, it has now said they can keep the money after a storm of protest online.

Cost of mistake

The cash advances, which employees no longer have to pay back, were in the neighborhood of $5,000. So about 25 lucky Microsoft employees got an extra five grand when they got the boot last month.

After sending letters to those 25 employees and then dealing with the backlash, Microsoft has said the employees can keep the extra money. So what Microsoft initially called an “administrative error” will cost the company about $125,000.

Starting the drama

So, 25 possibly disgruntled employees got letters saying they owed Microsoft money. And what do you know, one of those letters ended up being published online. People responded angrily. One comment in response to the letter:

“Are you kidding me?” wrote one commenter on the blog Techcrunch, where the news first erupted. “Screw you… what goes around comes around.”

Marching orders

In total, Microsoft laid off about 1,400 workers in January. The company says by the end of the year it will cut about 5,000 jobs. This year marks the first time the company has had to make major job cuts.

So about 3,600 more Microsoft employees will get the ax this year. But don’t expect Microsoft to be asking any future ex-employees to pay back accidental cash advances. I think they’ve learned their lesson.