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Microsoft drops severance request

February 24, 2009|Times Wire Reports

A few weeks after launching the first wide-scale layoffs in its history, Microsoft Corp. acknowledged that it botched a key part of the plan.

First, Microsoft realized that an administrative glitch caused it to pay more severance than intended to some laid-off employees. The company's response: It asked the former workers for the money back.

But when one of Microsoft's letters seeking repayment surfaced on the Web on Saturday, the situation turned embarrassing. The company reversed course and said the laid-off workers could keep the extra payouts.

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