Xbox Layoffs: Are Asha Sharma's H-1B Visa Policies Replacing US Workers? Xbox CEO Faces Backlash Over Job Cut Decision
Microsoft’s recent decision to cut 4,800 global jobs, including 3,200 in its Xbox division, has ignited intense backlash. Critics and lawmakers are questioning if H-1B visa holders are displacing American staff, an allegation the company denies as it cites financial restructuring under CEO Asha Sharma.
Microsoft is facing intense criticism following the announcement of a global restructuring plan that includes 4,800 job cuts. The most significant impact is felt within its Xbox gaming division, which is set to lose approximately 3,200 positions. The move has reignited a heated national debate regarding the H-1B visa programme and the employment of foreign nationals within major United States technology firms.
As per a report by India Today, political figures and social media commentators have seized on these layoffs to allege that the company is prioritising lower-cost foreign labour over American workers. These accusations have specifically targeted Xbox CEO Asha Sharma, who took the helm of the gaming unit in February this year. Xbox Layoffs: CEO Asha Sharma Shares Email Sent to Employees, Confirms Job Cuts and Studio Reset.
Scrutiny Over H-1B Visa Programme and Microsoft Hiring
The controversy intensified after data from the United States Citizenship and Immigration Services indicated that Microsoft received approval to hire 2,273 foreign workers via the H-1B programme this year. Republican Representative Riley Moore has been among the most vocal critics, publicly calling for the H-1B programme to be abolished. Moore described the current situation as detrimental to the domestic workforce, alleging that companies are exploiting immigration pathways to bypass hiring American citizens.
The narrative gained further traction on social media platforms, where users claimed that the influx of H-1B professionals is part of a broader trend of systematic displacement. Critics argued that the timing of the layoffs alongside continued visa-based hiring warrants a federal investigation, echoing broader concerns regarding the integrity of the temporary work visa system in the United States.
Microsoft Response to Layoff and H-1B Visa Allegations
Microsoft has firmly denied that the restructuring is linked to its visa-based hiring practices. In a statement to the media, a company spokesperson clarified that the job cuts were determined solely by business requirements and financial health rather than the immigration status of employees. The company emphasised that many H-1B visa holders were also affected by the recent wave of layoffs. Xbox Layoffs: Microsoft Lays Off Xbox Vice President Kevin LaChapelle After 37-Year Tenure.
CEO Asha Sharma defended the restructuring as a necessary step to address financial sustainability. In an internal memo, she noted that the division has been operating at margins significantly lower than those of its competitors. As the Trump Administration continues a broader federal probe into potential H-1B fraud and immigration exploitation, the tech sector remains under heightened pressure to justify its reliance on international talent amidst domestic workforce instability.
(The above story first appeared on LatestLY on Jul 10, 2026 06:26 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).