'Constructive Dismissal': Ex-MD of Microsoft for Start Ups Lathika Pai sues the company
Lathika Pai, the former Managing Director of Microsoft for Startups in India, reportedly started legal proceedings against
Microsoft India
. Pai accused the company of "constructive dismissal',
hostile work environment
and policy violations. Initially filed in Delhi High Court, the case has now been transferred to civil court in Bengaluru. Pai claimed that she was forced to resignand also alleged that Microsoft also conducted two internal investigations into a startup initiative she led —'
Highway to a 100 Unicorns
'—but denied her access to complaints and transcripts from the first probe. She also claims that a key interview in April 2024 was conducted without being recorded, violating Microsoft's stated policy.
Pai accused Microsoft India of hostile environment and forced resignation
As per multiple online reports, Lathika Pai's lawsuit claims that she was subjected to hostile work environment which ultimately led to her constructive dismissal. For those unaware,
Constructive Dismissal
takes place who an employee is forced to resign due to intolerable working conditions created by the employer, rather than being directly fired. Pai further alleges that Microsoft failed to address cyber harassment she faced in 2020, despite her formal complaints. She claims she was excluded from key forums, labeled a 'troublemaker', and her contributions were publicly overlooked.
Pai resigned on October 8, 2024, citing mental and physical distress caused by Microsoft's actions. She is seeking compensation for lost salaries, bonuses, stock options, reputational damage, and emotional suffering.
Microsoft has not issued an official statement on the lawsuit. The case will be heard in Bengaluru on June 9.
Microsoft recently fired 6000 employees
Microsoft recently announced that it will ay off 3% of its global workforce, affecting thousands of employees across all levels, teams, and geographies, amounting to over 6,000 employees. The cuts at the Redmond giant, which employed 228,000 people as of last June, aim to reduce management layers and streamline operations.
"We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace," a Microsoft spokesperson told CNBC in a statement.
The latest round of job cuts Microsoft's largest reduction since eliminating 10,000 roles in 2023. Unlike January's smaller performance-based cuts, the company indicated these layoffs are structural in nature.
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