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

The layoffs, announced last week, cut roughly 8% of the Xbox workforce, according to internal sources. The timing drew scrutiny after federal data showed Microsoft received approvals for 5,000 H-1B visas in the same quarter, a figure that critics say undermines the company's stated reason for the job cuts.

Microsoft has denied any link between the layoffs and visa approvals, stating that the reductions were based solely on business needs and performance. The company emphasized that it continues to hire in other areas and that H-1B visas are used to fill roles where qualified American workers are not available.

The controversy has reignited debate over the H-1B program, with some lawmakers calling for stricter oversight. Representative Tom Cotton (R-Ark.) tweeted that the layoffs are 'a slap in the face' to American workers, while industry groups argue that the visa program is essential for tech competitiveness.

Microsoft's statement did not address the specific timing of the layoffs relative to the visa approvals, but the company has pledged to provide severance and career transition support to affected employees. The backlash comes as the tech industry faces increased scrutiny over layoffs and offshoring practices.

The Xbox division, which includes game development and hardware, has seen a series of restructuring moves under Microsoft's broader cost-cutting efforts. The company has not announced any changes to its H-1B sponsorship plans.