Microsoft has denied criticisms that its recent spate of layoffs was connected to its use of the H-1B visa program, responding to a wave of political and public scrutiny following thousands of job cuts and continued recruitment of skilled foreign workers.
The debate gained national attention after multiple reports questioned the ethics and economic impact of companies, like Microsoft, making significant layoffs while simultaneously applying for thousands of temporary work visas for high-skilled foreigners.
Newsweek reached out to Microsoft via email for comment.
Why It Matters
Microsoft, which has reduced its workforce by about 16,000 employees this year, has consistently been among the top U.S. recipients of H-1B visa approvals. The H-1B visa program, which allows U.S. companies to temporarily employ foreign workers in specialty occupations, has become increasingly controversial among some parts of the Republican Party, who see it as a way to undermine U.S. workers in favor of foreign workers.
Sectors like technology, finance and academia are the primary beneficiaries; in 2024, leading firms such as Amazon, Google, Meta and Tesla secured thousands of H-1B approvals.
What To Know
Microsoft confirmed that it had laid off around 9,000 employees in its latest round of cuts, which accounted for about 4 percent of its workforce.
These layoffs came after two earlier rounds this year, bringing the total number of jobs eliminated to nearly 16,000. Government data also showed the company applied for 9,491 H-1B visas during the previous fiscal year, all of which were approved.
In a statement to CFO Dive, though, a Microsoft spokesperson said that the layoffs and the visas were unrelated, saying: "Our H-1B applications are in no way related to the recent job eliminations, in part because employees on H-1Bs also lost their roles. In the past 12 months, 78 percent of the petitions we filed were extensions for existing employees and not new employees coming to the U.S."
Microsoft's restructuring happened during a notably strong financial quarter; the company reported $26 billion in profit, and its stock price rose roughly 20 percent in the first half of 2025.
What People Are Saying
Vice President JD Vance sharply criticized Microsoft's approach during a bipartisan event on Friday, saying: "You see some Big Tech companies where they'll lay off 9,000 workers, and then they'll apply for a bunch of overseas visas. That displacement and that math worries me a bit...I don't want companies to fire 9,000 American workers and then say, 'We can't find workers here in America.' That's a story that doesn't make sense."
Steven Camarota, director of research at the Center for Immigration Studies, told Newsweek: "You have a situation where the advocacy or use of guest worker programs is entirely disconnected from the actual behavior of businesses. The actual data never supports the idea that we are terribly short of workers in the way that the business community says."
What Happens Next
Continued debate over the H-1B visa program is expected as lawmakers, regulators, and advocacy groups push for greater transparency and possible reforms.