Microsoft Says Layoffs Not Linked to H‑1B Visas
Microsoft has stated that its recent job cuts, which affected around 9,000 employees globally, are not related to the company’s use of the H‑1B visa program. The clarification comes in response to political criticism suggesting that the company laid off American workers while continuing to bring in foreign talent.
Political Criticism from U.S. Leadership
U.S. Vice President J.D. Vance criticized Microsoft for seeking H‑1B visas while implementing large-scale layoffs. He accused the company of undermining the local workforce and favoring cheaper foreign labor. In response, Microsoft explained that the layoffs and the visa applications were not connected and should not be interpreted as replacing American workers.
Majority of H‑1B Filings for Existing Staff
Microsoft noted that nearly 78% of its H‑1B visa filings in the past year were for extensions or renewals of current employees. Only a small number of applications were for new foreign hires. The company emphasized that many H‑1B workers were also affected by the layoffs, contradicting claims that foreign staff were being shielded from job cuts.
Layoffs Part of Tech Realignment
The layoffs, which impacted about 3% of Microsoft’s total workforce, are part of a larger shift toward AI and next-generation technology. Microsoft said the restructuring aims to focus investment in areas of long-term growth. CEO Satya Nadella called the decision tough but necessary to remain competitive.
Ongoing Debate Over H‑1B Policy
The controversy has reignited broader debates over the H‑1B visa program. Critics argue it puts pressure on domestic wages and job security, while supporters say it helps fill essential tech roles. Lawmakers are now discussing potential reforms that could impose new restrictions on visa usage during periods of mass layoffs.
What Comes Next
Microsoft stands by its commitment to fair hiring and workforce development in the U.S. The company said it would continue complying with all labor laws while balancing its need for global talent. The conversation around H‑1B policies is expected to remain a central issue as more tech firms undergo structural changes.
