Microsoft backs down in severance pay fiasco

The software giant came in for strong criticism when it emerged over the weekend that it sent letters to 25 ex-employees who had been overpaid, asking them to return the excess amount.

Microsoft has now released the following statement: "Last week, 25 former Microsoft employees were informed that they were overpaid as a part of their severance payments from the company.

"This was a mistake on our part. We should have handled this situation in a more thoughtful manner.

"We are reaching out to those impacted to relay that we will not seek any payment from those individuals."

It also emerged that a similar number were underpaid by the firm and are in the process of being reimbursed.

Microsoft announced its first ever job cuts in January after posting disappointing financial results.

Around 1,400 workers left immediately, and a further 4,000 will go over the next 18 months, the firm said.