Microsoft's gaming division is facing significant criticism following the layoff of 1,600 employees, a move that has drawn ire from online commentators and lawmakers who point to the company's approval for thousands of foreign worker visas.
The layoffs, part of a larger Microsoft workforce reduction affecting 4,800 employees, have sparked accusations that the company is displacing American workers in favor of cheaper foreign labor through the H-1B visa program. Data from U.S. Citizen and Immigration Services shows Microsoft was approved for 2,273 employer-sponsored, non-immigrant worker visas this year.
Online critics have voiced outrage, with one user on X stating, "Fire Americans to replace with thousands of visa workers? Straight to jail, and assets seized." Another described the H-1B program as "industrial scale job theft from Americans." The sentiment was echoed by others who blamed the government for approving the visas.
Microsoft, a significant recipient of H-1B visas, has stated that the decisions were based on business needs and not visa status. A spokesperson confirmed that H-1B employees were also affected by the job eliminations in the U.S.
"These decisions are based on business need, not visa status," the Microsoft spokesperson told Fox News Digital. "H-1B employees were also impacted by job eliminations in the U.S."
Xbox CEO Asha Sharma cited the company's financial performance as the reason for the layoffs. In a memo, Sharma stated, "Our business today is not healthy," noting that the division operates at margins significantly lower than comparable businesses. She indicated her strategy involves a "reset" for Xbox.
Despite Sharma's explanation, some critics have made unsubstantiated claims linking her heritage to the layoffs, given the high percentage of H-1B workers from India. Sharma was born in Wisconsin.
Calls for H-1B Program Reform
The controversy has drawn attention from lawmakers. Rep. Riley Moore, R-W.Va., called for an end to the non-immigrant visa program, stating, "No more. It’s long past time to end the H-1B scam."
Meanwhile, Vice President JD Vance announced a broad investigation into H-1B visa fraud. The Department of Labor has initiated dozens of subpoenas and investigations targeting individuals suspected of exploiting the program. "American jobs ought to go to American workers and not foreign fraudsters and the Department of Labor is fighting back against it," Vance said at a press conference.
Previous efforts to curb the use of H-1B visas, such as a proposed fee increase by former President Donald Trump, have faced legal challenges. A federal judge blocked a similar order, ruling that it constituted a tax, an authority reserved for Congress.