Microsoft has drawn intense criticism after announcing significant layoffs at its Xbox division while simultaneously receiving approval for thousands of H-1B visas. The company is laying off 1,600 employees from its Xbox division as part of a broader workforce reduction of 4,800 individuals. Concurrently, Microsoft has been approved to hire 2,273 foreign workers under the H-1B visa program this year.
Online commentators and some lawmakers have voiced outrage, accusing the company of prioritizing foreign labor over American workers to reduce costs. "Fire Americans to replace with thousands of visa workers? Straight to jail, and assets seized. This story has been told countless times," one social media user stated. Another critic lamented that the government's approval of H-1B visas contributes to the displacement of American jobs.
Microsoft, identified as a major beneficiary of H-1B visas, with a significant portion of its workforce concentrated in the United States, is facing accusations of exploiting the visa program. The company has even more H-1B applications pending. Some critics have labeled the H-1B program as "industrial scale job theft from Americans."
Rep. Riley Moore, R-W.Va., called for an end to the H-1B program, stating, "This is INSANE. LEGAL immigration is a major problem. These companies, especially big tech, are abusing these immigration programs to replace American workers with foreign workers. No more. It’s long past time to end the H-1B scam."
Xbox CEO Asha Sharma cited the division's financial performance as the reason for the layoffs, noting that "Our business today is not healthy." She indicated a need to "reset" Xbox operations due to profit margins significantly lower than comparable businesses.
Vice President JD Vance announced a federal investigation into potential H-1B visa fraud, with the Department of Labor initiating dozens of subpoenas and investigations. "American jobs ought to go to American workers and not foreign fraudsters and the Department of Labor is fighting back against it," Vance said.
In a separate but related development, a federal judge in Boston has blocked a $100,000 fee on H-1B visa applications imposed by the Trump administration. The judge ruled that the fee constituted an unauthorized tax, as only Congress has the authority to impose such taxes. The White House intends to appeal this decision. The Trump administration had previously attempted to limit employer use of the H-1B program through this fee, aiming to prioritize U.S. citizens.
