Visa & Immigration

Microsoft's Xbox division sparked public outrage after laying off 1,600 employees

Microsoft's Xbox division faces backlash after laying off 1,600 workers amid thousands of H-1B visa approvals.

Visa & Immigration desk
NRI HeraldJuly 9, 2026
3 min read
Woman speaking at a Bloomberg Tech event, relevant to US company visa and immigration issues.

Microsoft's Xbox division sparked public outrage after laying off 1,600 employees, with critics alleging the company prioritized foreign workers over American staff. The layoffs coincided with Microsoft receiving approvals for thousands of H-1B visas, fueling claims that foreign workers are replacing U.S. employees.

The company stated that the job cuts were based solely on business needs and were not related to visa approvals. Microsoft has not provided further details on the specific roles affected or the timeline of the layoffs.

The controversy highlights ongoing tensions around H-1B visa programs, which allow companies to hire skilled foreign workers. Critics argue that such programs can be exploited to displace American workers, while supporters say they fill critical skill gaps.

Microsoft has faced similar criticism in the past, though the company maintains that its hiring practices comply with U.S. labor laws. The current backlash underscores the sensitivity of corporate decisions involving layoffs and immigration.

Visa & Immigration desk · July 9, 2026
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