H-1B visa controversy explained: What's behind backlash over Microsoft's job cuts

Microsoft faces severe backlash following massive layoffs affecting over 4,800 employees including 1,600 from its Xbox gaming division, while simultaneously securing approval to hire 2,273 foreign workers under H-1B visa program this year.

This decision has sparked outage on social media with critics accusing the company of preferring lower-cost foreign labour over American workers. The backlash comes as Microsoft joins other major tech companies facing scrutiny over the H-1B program.

Rep. Riley Moore commented: “These companies, especially big tech, are abusing these immigration program to replace American workers with foreign workers.”

The company also faced severe backlash on social media. Responding to the criticism, a microsoft spokesperson defended the company’s actions saying: “These decisions are based on business need, not visa status. H-1B employees were also impacted by job eliminations in the US.”

Xbox CEO Asha Sharma cited financial challenges in an internal memo, noting that the division is “operating at margins that are 3-10x lower than comparable platform and publishing businesses.”

The debate follows efforts by the Trump Administration to restrict the use of the H-1B visa program, through the introduction of a $100,000 application fee, which was recently halted by a federal judge. In an announcement made on Tuesday, Vice President JD Vance launched an investigation into H-1B visa frauds, saying that: "American jobs should go to American workers, not foreign fraudsters."