Visa & Immigration

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

Microsoft faces backlash after Xbox layoffs of 1,600 employees coincided with 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 laid off 1,600 employees, sparking public outrage. The layoffs drew criticism after reports emerged that thousands of H-1B visa approvals occurred around the same time, leading to claims that foreign workers are replacing American workers.

Critics argued that the timing of the layoffs and visa approvals suggested a preference for hiring foreign workers over domestic employees. The controversy fueled broader debates about immigration and labor practices in the tech industry.

Microsoft responded by stating that the job cuts were based solely on business needs. The company did not directly address the connection between the layoffs and the visa approvals, emphasizing that decisions were made to align with organizational priorities.

The incident highlights ongoing tensions around H-1B visa programs, which allow companies to hire foreign workers in specialized fields. Critics of the program argue it can be used to undercut American wages, while supporters say it fills critical skill gaps.

Visa & Immigration desk · July 9, 2026
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