Microsoft Faces Backlash After Xbox Layoffs Follow Thousands Of Foreign Worker Visa Approvals

Microsoft is facing growing criticism after laying off 4,800 employees worldwide, including roughly 1,600 workers in its Xbox gaming division, while receiving approval to hire thousands of foreign workers through the H-1B visa program.

According to U.S. Citizenship and Immigration Services data, Microsoft has been approved this year to hire 2,273 foreign workers under the H-1B visa program, with additional applications still pending. Critics argue the company is replacing American workers with lower-cost foreign labor while continuing to expand its use of the visa system.

The layoffs sparked outrage across social media, with many users accusing large technology companies of exploiting immigration programs at the expense of American employees. Some called for criminal penalties against companies that replace U.S. workers with visa holders, while others demanded major reforms or the complete elimination of the H-1B program.

Rep. Riley Moore, R-W.Va., sharply criticized the practice, calling the H-1B program a “scam” that allows major corporations to replace American workers with foreign labor. The Project for Immigration Reform also accused employers of routinely abusing the visa program.

Microsoft defended its decision, saying the layoffs were driven by business needs rather than immigration policy. A company spokesperson said H-1B employees were also affected by the job cuts and insisted visa status played no role in determining who was laid off.

Xbox CEO Asha Sharma told employees the gaming division’s financial performance required significant restructuring, saying the business was operating with much lower profit margins than competing gaming platforms. She said the layoffs were part of a broader effort to reset the division for long-term growth.

The controversy comes as Vice President JD Vance announced that the Department of Labor has launched dozens of investigations and subpoenas targeting alleged H-1B visa fraud. The Trump administration has also sought to tighten oversight of the program, arguing that American jobs should be filled by American workers whenever possible.