Microsoft has laid off approximately 4,800 employees, representing 2.1 percent of its workforce, with significant cuts in its Xbox gaming and commercial sales divisions. The move comes as the tech giant continues to file large numbers of H-1B visa applications for foreign workers.
The layoffs are part of a broader restructuring effort as Microsoft shifts focus toward artificial intelligence (AI) and higher-margin projects across its operations. The Xbox division has been particularly affected, with over 30 percent of layoffs targeting gaming operations, including the spin-off of four studios to independent management. Microsoft also introduced its first-ever voluntary retirement program for long-tenured U.S. employees.
However, the company is continuing to file thousands of H-1B visa applications annually, suggesting that the cuts are not only about streamlining for the AI era but also about replacing American workers with foreign labor.
A Microsoft spokesman stated: “These decisions are based on business need, not visa status. H-1B employees were also impacted by job eliminations in the U.S.”
The restructuring underscores Microsoft’s pivot toward AI-driven initiatives and shift away from the gaming industry. However, the pairing of job cuts with sustained H-1B visa filings could prompt scrutiny from the White House.
In 2022, Microsoft cut approximately 10,000 jobs while filing over 1,000 new H-1B visa applications, a pattern mirrored across the tech industry as companies simultaneously reduce domestic headcount and expand global hiring.
