Microsoft Refutes Notion That Foreign-Worker Visas Were Behind Mass Xbox Layoffs
Microsoft has pushed back against reports claiming that foreign-worker H-1B visas were behind the company’s recent massive layoffs at Xbox. The cuts affected 1,600 employees immediately, with an additional 1,600 expected to be laid off over the next year, and resulted in the spinoff of four studios, including Arkane Studios.
Microsoft communications chief Frank X. Shaw addressed the allegations on social media, stating that while some Microsoft workers do hold H-1B visas, they are “not specific to Xbox and represent a small percentage of Microsoft’s overall workforce.” Shaw further noted that the majority of the affected roles were not American positions, directly contradicting claims that layoffs were designed to replace American workers with visa-sponsored employees.
The conspiracy theories, apparently originating from outlets like Fox News, gained traction on social media despite lacking evidence. Microsoft addressed additional allegations by noting that Xbox CEO Asha Sharma is “American born, raised, and educated,” seemingly responding to claims involving her role in the decision.
Shaw emphasized that the workforce restructuring was made because “the Xbox business is not healthy,” framing the layoffs as a business decision rather than a visa-related hiring strategy. The layoffs represent one of the largest recent workforce reductions in the gaming industry and have generated significant controversy, though Microsoft’s statement seeks to redirect criticism toward the actual business rationale for the cuts rather than immigration-related claims.