Microsoft approves 2,273 H-1B visas as Xbox unit cuts 1,600 jobs
Microsoft received approval for 2,273 H-1B visas this year while announcing a layoff of 1,600 employees in its Xbox division, prompting criticism from some public figures and online commentators.
Microsoft said it will eliminate a total of 4,800 positions, including 1,600 jobs in its Xbox division, which produces the company's flagship gaming console. In the same period, the U.S. Citizenship and Immigration Services approved the company to sponsor 2,273 foreign workers under the H-1B non-immigrant visa program.
A Microsoft spokesperson said the layoffs were driven by business needs and that H-1B employees were also affected by the reductions. Xbox chief executive Asha Sharma noted that the division's financial performance had deteriorated, with profit margins far below those of comparable platforms, and described the cuts as part of a broader "reset" strategy.
The company's H-1B approvals make it the sixth-largest beneficiary of the program, which is largely used by workers from India. Lawmakers and advocacy groups have criticized the use of H-1B visas, with Rep. Riley Moore calling for an end to the program, and the Project for Immigration Reform alleging that employers exploit it. Vice President JD Vance announced a Department of Labor investigation into alleged fraud in the H-1B system.
Critics on social media linked the layoffs to the visa approvals, suggesting that American workers were being displaced by foreign hires. Microsoft has not commented on those specific allegations.