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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.

People walk by the Microsoft Office building on 41st street and 8th avenue on May 13, 2025 in New York City.
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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.