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U.S. Leaders Challenge Microsoft Over Layoffs and H-1B Visa Use

President Trump’s administration is urging a revamp of H-1B rules to prioritize American hires in response to Microsoft’s recent visa filings alongside workforce reductions.

Vice President JD Vance speaks at Don's Machine Shop in West Pittston, Pa., Wednesday, July 16, 2025.
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Overview

  • Vice President JD Vance accused Microsoft of presenting “a bullshit story” by laying off 9,000 American employees then pursuing thousands of H-1B visa applications.
  • The White House announced plans to overhaul the H-1B selection process to boost transparency and ensure domestic workers receive hiring priority.
  • Microsoft CEO Satya Nadella issued an internal memo asserting that overall headcount remains “relatively unchanged” despite successive rounds of job cuts.
  • A tech investor fact-checked administration claims by highlighting that most of Microsoft’s recent visa petitions were renewals for existing staff, not new foreign hires.
  • Heightened scrutiny of corporate visa use has prompted Indian tech professionals to reconsider U.S. opportunities amid policy uncertainty.