Microsoft is cutting 1,600 jobs from its Xbox division this year, even as the company holds approval to hire more than 2,000 foreign workers on H-1B visas. Fox News first reported the overlap on Thursday. Since then, it has drawn sharp criticism online.
In total, Microsoft plans to lay off 4,800 workers across the company. Of those, 1,600 come from Xbox, according to Fox News. IGN reported that 3,200 Xbox staff will lose their jobs this financial year. The first 1,600 have already gone. The rest will follow later.
Meanwhile, government data cited by Fox News shows Microsoft won approval this year to hire 2,273 employer-sponsored workers under the H-1B program. That visa system lets US companies bring in skilled foreign workers when they say they cannot find enough qualified American applicants.
The timing has angered critics. Fox News reported that many accused Microsoft of cutting American jobs while bringing in foreign workers to save on labor costs.
“These decisions are based on business need, not visa status. H-1B employees were also impacted by job eliminations in the U.S.,” a Microsoft spokesperson told Fox News.
Xbox cuts hit game studios too
The Xbox layoffs go beyond office jobs. IGN reported that Microsoft closed four game studios. Microsoft had added those studios earlier, under Phil Spencer, to build up the Game Pass subscription service. IGN also reported that a fifth studio is now in talks to be sold or shut down.
The cuts come alongside a price increase for Xbox consoles, which IGN says will take effect in August. Microsoft blames the higher prices on what it calls an ongoing “components crisis.” The company points to the rising cost of parts and components.
Sanders slams Microsoft over layoffs
Senator Bernie Sanders of Vermont weighed in publicly. He argued the layoffs prove corporate tax breaks do not protect jobs. IGN reported his comments on the social media platform X.
“Last year, Microsoft made $101 billion in profits, got a $12.5 billion tax break from Trump & paid its CEO $96 million,” Sanders wrote. “This year, it’s raising the price of an Xbox by $150 & eliminating 3,200 jobs. Please don’t tell me corporate tax breaks create jobs. It never trickles down.”
H-1B fee fight adds to the debate
The Xbox layoffs have reignited a wider argument. The dispute is about how US tech companies use the H-1B visa program.
Fox News also reported that a federal judge in Boston blocked a Trump administration plan to charge a $100,000 fee for new H-1B visas. The judge ruled the fee amounted to an unauthorized tax that Congress never approved. Before that plan, Fox News said, the fee had ranged from $2,000 to $5,000.
IGN reported that the layoffs will continue in stages until all 3,200 job cuts take effect within this financial year.
