A senior Microsoft executive has told the High Court he was not surprised that a former senior manager with the computer giant's Irish division, who is claiming constructive dismissal, had felt her job and responsibility had diminished.

Soma Somasegar, corporate vice-president at Microsoft headquarters in Seattle, who was a superior of Breda Pickering, a former head of localisation for Microsoft Ireland, was giving evidence in her action against Microsoft Ireland Operations Ltd. He worked closely with her until her departure from the company, the court heard.

Ms Pickering's employment was terminated in July 2001. Ms Pickering, of Knockbracken House, Bishop's Lane, Kiltiernan, Co Dublin, spent 13 years with Microsoft and, the court has heard, realised more than €13 million in stock options during that time. She was on an annual salary of some €134,000 plus benefits.

In the action, Ms Pickering is claiming constructive dismissal. She alleges she was "frozen out" of the company from autumn 2000 after she turned down an offer of promotion. She is seeking damages for alleged negligence, breach of contract and failure to get her redundancy entitlements and stock options. The defence denies her claims.

During cross examination yesterday by Hugh Mohan SC, for Ms Pickering, Mr Somasegar agreed he had received an e-mail in 2001 from Lori Brownell, the Seattle-based head of Microsoft's worldwide localisation, stating that someone of the same level would not be required to fill Ms Pickering's role if she left.

Mr Mohan suggested this was "effectively demoting somebody" but Mr Somasegar replied: "Absolutely not." Mr Mohan suggested Mr Somasegar offered Ms Pickering the position of worldwide localisation manager, based in Redmond, Seattle, in June 1999 and, when Ms Pickering stated she would prefer to be based in Ireland, Mr Somasegar gave the job to Ms Brownell without further consulting the plaintiff.

Mr Somasegar said it would have been "very important" for Ms Pickering to relocate to the US if she were to be successful in the role. "I did tell Breda if you are not coming to Redmond for this job then I have to look elsewhere. I cannot remember the time, but I am assuming it was August or September [ 1999] time," he said.

Mr Mohan referred to e-mails sent between Microsoft human resources, solicitors and management and suggested to Mr Somasegar that, in 2001, when it was clear Ms Pickering was unhappy and stressed in her job, he failed to fight to retain an employee at the "top of the heap".

Evidence concluded yesterday and Mr Justice Esmond Smyth will begin hearing legal submissions from the sides when the case resumes on Tuesday.