Microsoft faces backlash over 9,000 layoffs due to H?1B visa issue

Microsoft recently laid off approximately 9,000 employees, representing around 4% of its workforce, as part of broader restructuring efforts this year, a total of more than 15,000 positions have been cut in 2025.

These cuts coincided with a surge in H?1B visa petitions. The company filed thousands of applications in the months leading up to the layoffs, reportedly totaling 4,776 labor condition applications between September and March, indicating up to 14,181 positions supported via H?1B contracts.

Key points:

• Roughly 78% of Microsoft’s H?1B filings were renewals for existing employees, not new hires.
• In 2024, only about 1,200 new H?1B petitions were filed – just 10% of Microsoft’s new hiring and around 0.5% of total workforce.
• Many employees on H?1B status were also among those laid off – Microsoft affirmed layoffs included visa holders.

Political Backlash and Public Criticism

Vice President J.D. Vance publicly lambasted Microsoft, declaring he did not want companies to terminate American employees only to then petition for H?1B labor.

“I don’t want companies to fire 9,000 American workers and then say we can’t find workers here in America,” Vance said.

Former White House advisor Steve Bannon echoed the sentiment, urging a halt to all visa programs amid mass layoffs.

Social media users amplified the controversy, citing that Microsoft had filed upward of 14,181 H?1B visa requests in 2025, triggering outrage over perceived exploitation of the system despite job cuts.

Satya Nadella Defends

CEO Satya Nadella issued an internal memo acknowledging the emotional toll of the layoffs, calling the decision “among the most difficult we have to make,” and emphasizing that Microsoft remains financially strong, deeply invested in AI infrastructure, and operational stability despite the restructuring.

He described the situation as the “enigma of success,” noting that while Microsoft continues to thrive, hitting record market performance and investing heavily in AI, its overall headcount remains “relatively unchanged.”

Nadella stressed the company’s strategic realignment rather than downsizing, framing the job cuts as necessary for long-term competitiveness in an industry driven by AI transformation.

Nadella also reaffirmed three pillars going forward: security, quality, and AI innovation, urging employees to embrace a growth mindset even amid disruption.

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