Microsoft Xbox layoffs have intensified the US debate over H-1B visas after Rep. Riley Moore linked the job cuts to foreign-worker approvals. Microsoft says the restructuring is based on business needs and that H-1B employees were also affected.
Microsoft announces thousands of job cuts
Microsoft’s Xbox layoffs have renewed political scrutiny of the H-1B visa program, with critics questioning why major technology companies continue sponsoring foreign professionals while reducing their workforces.
Microsoft announced on Monday, July 6, 2026, that it would eliminate approximately 4,800 roles, or about 2.1% of its global workforce. The company said the broader restructuring was intended to concentrate employees and investments on its highest priorities.
Xbox separately plans to reduce its workforce by approximately 3,200 roles throughout Microsoft’s 2027 fiscal year. About 1,600 positions were eliminated immediately, while four game studios are leaving Xbox management.
H-1B visa backlash follows Xbox restructuring
What is verified
Microsoft announced major Xbox job cuts, and Rep. Riley Moore linked the layoffs to H-1B approvals. However, publicly available data does not prove that specific laid-off American workers were directly replaced by H-1B employees.
The layoffs drew criticism after reports said Microsoft had received approvals associated with 2,273 H-1B workers in 2026. Republican Rep. Riley Moore of West Virginia cited the figures while accusing large technology companies of replacing American workers and calling for the visa program to end.
However, H-1B approvals do not prove that 2,273 new employees were hired to replace laid-off workers. The figures can include extensions, employer transfers, amended petitions and jobs across different divisions, occupations and locations.
Microsoft told Newsweek that its decisions were based on business requirements rather than immigration status and said H-1B employees were also affected by the cuts.
Why Microsoft is restructuring Xbox
The visa controversy follows a broader restructuring of Microsoft’s gaming business. Readers can learn more about the company’s workforce reductions and studio changes in our detailed report on Microsoft layoffs hitting the Xbox division.
Xbox CEO Asha Sharma described the changes as the most significant restructuring in the division’s history. The business has faced weak margins, rising console-component costs and strong competition from Sony and Nintendo.
The company is also transferring or separating Compulsion Games, Double Fine Productions, Ninja Theory and Undead Labs while reviewing options for Arkane Studios.
Debate continues without proof of replacement
The timing of the layoffs and visa approvals has given H-1B critics a prominent example in the wider dispute over skilled immigration and US technology employment. Supporters argue that the program helps employers recruit specialized workers, while opponents contend that safeguards for domestic employees are inadequate.
No publicly verified evidence currently demonstrates that Microsoft dismissed specific American Xbox employees and directly replaced them with H-1B workers. The controversy is therefore likely to focus on whether Congress should require greater disclosure from companies that sponsor visa employees while conducting large-scale layoffs.
