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Microsoft Executes 9,000 Layoffs as H-1B Applications Surge

Regulators have questioned whether the influx of low-paid visas replaces U.S. staff instead of filling genuine skill gaps.

Overview

  • On July 3, Microsoft announced another round of 9,000 global layoffs affecting under four percent of its workforce across divisions including gaming.
  • Federal data shows 4,712 H-1B visa applications filed for fiscal year 2025 alongside more than 6,300 petitions for software engineering roles in Washington state.
  • Reports indicate 82 percent of Microsoft’s 14,181 foreign labor requests this year propose wages below local market rates and are routed through outsourcing firm Integreon.
  • Lawmakers and regulators have raised concerns over possible misuse of the H-1B program to replace U.S. workers and are considering investigations into wage levels and hiring practices.
  • The company maintains that the layoffs will streamline operations for future growth while it invests $3 billion in its India business and plans to train ten million people in AI skills.