Microsoft U-Turns on Severance Clawback

Microsoft is moving to stem a flood of bad publicity by letting laid-off workers who accidentally got too much severance pay keep the extra cash, TechCrunch reports. The workers, who lost their jobs last month in Microsoft's first-ever mass layoffs, contacted news media after receiving letters from the company asking them to return some of their severance payments.

"This was a mistake on our part," a statement from the company said. “We should have handled this situation in a more thoughtful manner." Microsoft's HR chief said she was personally calling the 25 workers affected, who received an average of about $4,000 or $5,000 in extra pay, and that 20 others who had been underpaid would be reimbursed immediately.
(More severance pay stories.)