Microsoft Drops Payback Demand on Ex-workers

Microsoft Corp has dropped an attempt to recoup some severance money from 25 recently fired workers it mistakenly overpaid.

The Redmond, Washington-based company, which announced a plan to cut up to 5,000 jobs in January, acknowledged on Sunday that it had tried to get the overpaid workers to return the extra money. But late on Monday, it reversed course.

"This was a mistake on our part," said a Microsoft spokesman in an e-mailed statement. "We should have handled this situation in a more thoughtful manner."

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