Microsoft accounting error shows up as huge PR blunder

Filed under: Management, Microsoft (MSFT), Employees, Workspace, Technology

Things have again become spicy in the world of Microsoft Corp. (NASDAQ: MSFT). Reports are circulating that Microsoft miscalculated the severance payouts to some of the approximately 1,400 employees that the company recently laid off.

According to CNET News, Microsoft Corp. has sent out letters requesting a return of funds from those former employees who received apparent overpayment of severance benefits.The report also indicates that some of the laid off workers may have received severance underpayments.

The PR implications here are ugly. First, simply bringing up the subject of laid off employees is muddy water that most employers would rather stay out of. Next, consider the impression this gives of kicking people when they're down. Then, add a vision of buffoonery when a tech company fails to issue accurate checks while no doubt using its own accounting software.

Imagine the awesome potential here for some hot shot, wet-behind-the-ears lawyer kids to do some pro-bono work. I envision them fighting reclamation of these funds, in exchange for the incredible exposure such litigation could provide.

The amounts of these severance mistakes must be astoundingly large. Either that, or nobody over at Microsoft headquarters ever stopped to do a cost-benefit analysis regarding the subtle costs of pursuing these errant funds. In either case, this situation is a serious public relations blunder for Microsoft Corporation. Yes, it's just a simple accounting error on its face, but all the Microsoft haters out there, and there are a lot of them, have just been given a real sweet handle.

 

Read | Permalink | Email this | Linking Blogs | Comments