Visa & Immigration

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

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.

The layoffs, announced on Thursday, affected approximately 1,600 employees across the Xbox division, including staff at ZeniMax Media and Activision Blizzard. The move drew immediate criticism on social media, with users pointing to the timing of the job cuts and the recent approval of thousands of H-1B visas for Microsoft workers.

Critics argue that the company is prioritizing foreign workers over American employees, citing data from the U.S. Citizenship and Immigration Services showing that Microsoft received approvals for over 5,000 H-1B visas in the last fiscal year. Some lawmakers and labor advocates have called for an investigation into the company's hiring practices.

Microsoft defended its decision, stating that the layoffs were based on business needs and were part of a broader restructuring effort. The company emphasized that it remains committed to its workforce and that the H-1B visa program is used to fill roles where qualified American workers are not available.

The controversy comes at a time when the tech industry is facing heightened scrutiny over layoffs and offshoring. Microsoft's Xbox division, which has seen significant growth in recent years, is now under pressure to address concerns about its employment practices while maintaining its competitive edge in the gaming market.

Visa & Immigration desk · July 9, 2026
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