In recent days, Microsoft issued a statement denying any connection between its recent series of layoffs and criticism related to its use of H-1B visas to hire foreign workers. Some employees holding such visas were included in the layoffs, and new H-1B visa applications were primarily for extending the stay of existing foreign employees rather than hiring new ones.
A Microsoft spokesperson stated in a communication to CFO Dive that, “Our H-1B applications have nothing to do with the recent layoffs, partly because some H-1B employees also lost their positions; in the past 12 months, 78% of our applications were for extending the stay of existing employees, not for hiring new ones.”
Former US Vice President JD Vance previously criticized Microsoft for laying off American workers while claiming they cannot find workers in the US. He pointed out, “We see some large tech companies laying off 9,000 employees, then applying for a bunch of visas for foreign workers, which to me doesn’t make sense.”
Vance added, “This method of layoffs and calculations makes me somewhat worried. President (Trump) made it very clear: We want the best, the brightest people to make America their home, to build great companies, and so on. I don’t want companies laying off 9,000 American workers and then saying they can’t find workers in America; that’s nonsense!”
Microsoft has cut approximately 16,000 employees through two rounds of layoffs this year, making it one of the companies with the highest number of H-1B visa applications in the US. Other large corporations like Amazon, Google, Meta, and Tesla also applied for H-1B visas for thousands of foreign workers in 2024.
The actions of companies like Microsoft have raised public concern, with multiple reports questioning the ethics of such practices.
Steven Camarota, Director of Research at the Center for Immigration Studies, told Newsweek, “What we are seeing now is advocacy for or the use of foreign worker programs that are completely disconnected from the actual conditions of businesses. The reality has never been that there is a severe shortage of workers as the business sector claims.”
Republicans believe that the H-1B program will weaken the position of American workers.
The Trump administration is planning significant reforms to the H-1B program, and debates on the pros and cons of the H-1B visa scheme are expected to continue.
(Adapted from reporting by Newsweek)