Microsoft cut 4,800 jobs after getting H-1B approvals to hire 2,273 foreign workers, report says
Microsoft is facing criticism after laying off 4,800 employees, including 1,600 in its Xbox division, while receiving approval to hire more than 2,200 H-1B workers this year. The timing has reignited the debate over foreign hiring, prompting backlash online and fresh political scrutiny.
Microsoft is facing criticism in the United States after announcing thousands of layoffs while continuing to hire foreign professionals through the H-1B visa program. The situation has triggered fresh debate over whether major technology companies are reducing their American workforce while bringing in skilled workers from overseas.
The company recently confirmed that around 4,800 employees will lose their jobs as part of its restructuring effort. Of those, nearly 1,600 positions are being eliminated from Microsoft's Xbox gaming division. At the same time, data from the US Citizenship and Immigration Services (USCIS) shows Microsoft has received approval to hire 2,273 workers under the H-1B visa program this year. Reports also suggest the company has additional H-1B applications awaiting approval. The timing of the layoffs and visa approvals has sparked strong reactions on social media. Several users accused Microsoft of prioritising foreign hiring while American employees lose their jobs.
One user on X wrote, "A great way to fix this is to throw anyone doing this in prison. Fire Americans to replace with thousands of visa workers? Straight to jail, and assets seized." Another said the government had "sold us out of jobs at home" by approving H-1B visas, while another described the programme as "industrial scale job theft from Americans."
Layoffs reignite H-1B hiring debate in the US
Microsoft has rejected suggestions that the layoffs were linked to employees' immigration status. Responding to the criticism, a company spokesperson told Fox News Digital, "These decisions are based on business need, not visa status. H-1B employees were also impacted by job eliminations in the U.S."
Microsoft is one of the biggest users of the H-1B program, ranking sixth among employers receiving such approvals. The visa allows US companies to hire highly skilled foreign workers for specialised roles, particularly in the technology sector. A large share of H-1B recipients are professionals from India.
The layoffs were also addressed by Xbox CEO Asha Sharma, who said the gaming business is facing financial challenges. In a memo reported by The Associated Press, Sharma said, "Our business today is not healthy. We are operating at margins that are 3-10x lower than comparable platform and publishing businesses." She added that the restructuring is aimed at helping Xbox "reset" its business.
The controversy has also drawn political attention. Republican Representative Riley Moore criticised the H-1B programme, saying large technology companies were using it to replace American workers. He said, "It's long past time to end the H-1B scam." Meanwhile, Vice President JD Vance recently announced that the Department of Labor has launched dozens of investigations into alleged H-1B visa fraud. He said the administration wants to ensure "American jobs ought to go to American workers and not foreign fraudsters."
The debate has also gained momentum after President Donald Trump's administration attempted to impose a $100,000 fee on H-1B applications. However, a federal judge later blocked the measure, ruling that such a fee could only be imposed by Congress.
Microsoft is facing criticism in the United States after announcing thousands of layoffs while continuing to hire foreign professionals through the H-1B visa program. The situation has triggered fresh debate over whether major technology companies are reducing their American workforce while bringing in skilled workers from overseas.
The company recently confirmed that around 4,800 employees will lose their jobs as part of its restructuring effort. Of those, nearly 1,600 positions are being eliminated from Microsoft's Xbox gaming division. At the same time, data from the US Citizenship and Immigration Services (USCIS) shows Microsoft has received approval to hire 2,273 workers under the H-1B visa program this year. Reports also suggest the company has additional H-1B applications awaiting approval. The timing of the layoffs and visa approvals has sparked strong reactions on social media. Several users accused Microsoft of prioritising foreign hiring while American employees lose their jobs.
One user on X wrote, "A great way to fix this is to throw anyone doing this in prison. Fire Americans to replace with thousands of visa workers? Straight to jail, and assets seized." Another said the government had "sold us out of jobs at home" by approving H-1B visas, while another described the programme as "industrial scale job theft from Americans."
Layoffs reignite H-1B hiring debate in the US
Microsoft has rejected suggestions that the layoffs were linked to employees' immigration status. Responding to the criticism, a company spokesperson told Fox News Digital, "These decisions are based on business need, not visa status. H-1B employees were also impacted by job eliminations in the U.S."
Microsoft is one of the biggest users of the H-1B program, ranking sixth among employers receiving such approvals. The visa allows US companies to hire highly skilled foreign workers for specialised roles, particularly in the technology sector. A large share of H-1B recipients are professionals from India.
The layoffs were also addressed by Xbox CEO Asha Sharma, who said the gaming business is facing financial challenges. In a memo reported by The Associated Press, Sharma said, "Our business today is not healthy. We are operating at margins that are 3-10x lower than comparable platform and publishing businesses." She added that the restructuring is aimed at helping Xbox "reset" its business.
The controversy has also drawn political attention. Republican Representative Riley Moore criticised the H-1B programme, saying large technology companies were using it to replace American workers. He said, "It's long past time to end the H-1B scam." Meanwhile, Vice President JD Vance recently announced that the Department of Labor has launched dozens of investigations into alleged H-1B visa fraud. He said the administration wants to ensure "American jobs ought to go to American workers and not foreign fraudsters."
The debate has also gained momentum after President Donald Trump's administration attempted to impose a $100,000 fee on H-1B applications. However, a federal judge later blocked the measure, ruling that such a fee could only be imposed by Congress.
