H-1B: Inside Microsoft Layoffs and the Foreign Visa Loophole
Summary
Microsoft is cutting about 4,800 jobs, mostly in sales and its Xbox division, as part of a company restructuring focused on adapting to AI technology. At the same time, Microsoft is increasing its filings for high-skilled H-1B visas, which has raised questions about how it is managing its workforce.Key Facts
- Microsoft is reducing its workforce by around 4,800 employees, about 2.1% of its staff.
- The largest job cuts are in commercial sales teams and the Xbox gaming division.
- Over 30% of the layoffs affect Xbox, with approximately 1,600 employees losing their jobs immediately.
- Microsoft plans to cut about 20% of Xbox jobs by July 2027.
- Four Xbox game studios are being spun off to operate independently, reversing past acquisitions.
- Microsoft is considering selling or closing Arkane Studios due to project delays and budget issues.
- The company states the layoffs are based on business needs, not visa status, and H-1B visa workers were also impacted.
- Microsoft has filed for more high-skilled H-1B visas amid the layoffs, which some experts say is part of a tech industry trend.
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