Microsoft faced backlash after Microsoft layoffs affected more than 4,800 employees, including 1,600 in its Xbox gaming division, while the company received approval to hire 2,273 H-1B workers this year.
The criticism spread on social media, where users accused the company of replacing U.S. workers with lower-cost foreign labour. Microsoft said the decisions were based on business needs, not visa status.
“These decisions are based on business need, not visa status. H-1B employees were also impacted by job eliminations in the U.S.,” a Microsoft spokesperson said.
Rep. Riley Moore criticised big technology companies over the H-1B program. He said some firms were abusing immigration programs to replace American workers with foreign workers.
Read: Microsoft Layoffs Cut 4,800 Jobs as Xbox Restructures
Xbox CEO Asha Sharma cited financial pressure in an internal memo. She said the division was operating at margins “3-10x lower” than comparable platform and publishing businesses.
The backlash comes as major technology companies face increased scrutiny over their use of H-1B visas. The Trump administration had sought restrictions through a $100,000 application fee, which was later halted by a federal judge.
Vice President JD Vance also announced an investigation into H-1B visa fraud, saying American jobs should go to American workers, not “foreign fraudsters.”
