Microsoft faces sharp criticism from Vice President JD Vance in July 2025 after laying off about 9,000 workers while applying for thousands of H-1B visas. The company insists these visa applications are mostly for existing employees, not new hires, and says the layoffs and visa filings are not connected.
Microsoft’s layoffs, announced in early July 2025, affected roughly 3% of its global workforce, with many job cuts hitting software engineering and product management roles at its Redmond headquarters. Around the same time, reports show Microsoft filed about 4,712 H-1B visa applications. This overlap led JD Vance to question the company’s actions, arguing it does not make sense to claim a shortage of American workers while letting them go and seeking foreign talent.
JD Vance, speaking at the “Winning the AI Race” Summit and other events, called the practice “a bulls**t story.” He said, “You can’t say there aren’t enough American workers and then fire thousands of them while asking for more H-1B visas.” Vance’s comments reflect a growing concern among some political leaders that tech companies use the H-1B visa program to replace American workers with cheaper foreign labor.
In response, Microsoft issued an official statement in late July 2025, aiming to clear up what it calls misunderstandings. The company explained, “Our H-1B applications are in no way related to the recent job eliminations in part because employees on H-1B’s also lost their roles. In the past 12 months, 78% of the petitions we filed were extensions for existing employees and not new employees coming to the U.S.” This means most of Microsoft’s H-1B visa filings are to keep current foreign workers, not to bring in new ones.
Microsoft CEO Satya Nadella addressed the layoffs in an internal memo, saying the decisions were difficult but necessary as the company shifts focus to artificial intelligence and new technologies. Nadella emphasized that Microsoft wants to position itself for future success, even if it means making tough choices now.
The H-1B visa program allows companies in the United States 🇺🇸 to hire foreign workers in specialty jobs, especially in technology. Each year, there is a cap on how many new H-1B visas are given out, and demand often far exceeds supply. The program has long been controversial. Critics argue it lets companies pay lower wages and replace American workers, while supporters say it helps fill jobs that are hard to staff with local talent.
JD Vance’s criticism is not new. Many conservative voices have argued for years that the H-1B program is abused by large tech firms. They claim companies like Microsoft use the system to cut costs and avoid hiring Americans. On the other hand, Indian-American tech investors and others point out that many H-1B workers who lose their jobs face serious challenges. When laid off, these workers have just 60 days to find a new job or leave the United States 🇺🇸. Many of Microsoft’s H-1B visa applications are for long-term employees who have been waiting years for green cards, not for brand-new hires.
The Biden administration, including Vice President JD Vance, has pushed for policies that put American workers first in tech hiring. This continues a trend started by the Trump administration, which tried to tighten rules around the H-1B program and promote an “America First” approach. Despite these efforts, no major new laws have changed the H-1B system as of July 2025.
Microsoft’s situation highlights several important points for workers and employers:
- Layoffs and H-1B visas can affect both American and foreign workers. Many H-1B holders lost their jobs in the recent cuts, facing the risk of having to leave the country if they cannot find new employment quickly.
- Most of Microsoft’s H-1B filings are for extensions, not new hires. This suggests the company is trying to keep experienced foreign workers already on staff, rather than replacing Americans with new foreign hires.
- The 60-day grace period for H-1B workers is a major challenge. If they cannot find a new job within two months, they must leave the United States 🇺🇸, which can disrupt families and careers.
- Some laid-off H-1B workers look to other immigration options. The EB-5 Immigrant Investor Program, for example, allows people to get a green card by investing in the United States 🇺🇸, but this is not an option for everyone due to high investment requirements.
As reported by VisaVerge.com, the debate over H-1B visas and tech layoffs is likely to continue. Political leaders, tech companies, and immigrant communities all have strong opinions about how the system should work. Companies like Microsoft may face more pressure to show they are not abusing the visa system and are committed to hiring American workers whenever possible.
For foreign workers, the situation remains uncertain. Many have built lives in the United States 🇺🇸, bought homes, and started families. Losing a job can mean uprooting everything if they cannot find new work quickly. Some experts suggest that companies and lawmakers should look for ways to make the system fairer, such as giving laid-off H-1B workers more time to find new jobs or speeding up the green card process for those who have been in the country for years.
For American workers, the main concern is job security and fair wages. Some worry that companies use the H-1B program to keep wages low or avoid hiring locally. Others point out that the tech industry still struggles to find enough workers with the right skills, especially as new technologies like artificial intelligence become more important.
If you are an H-1B worker affected by layoffs, it is important to know your rights and options. You have a 60-day grace period to find new employment or change your visa status. Some may consider other visa categories or programs like EB-5, but these have their own requirements and challenges. For more details on the H-1B program, you can visit the official USCIS H-1B page.
In summary, Microsoft’s recent layoffs and H-1B visa filings have sparked a heated debate about the future of tech jobs and immigration in the United States 🇺🇸. While the company says most visa applications are for existing workers, critics like JD Vance remain skeptical. The issue is complex, with real impacts on both American and foreign workers. As the tech industry continues to change, the conversation about who gets to work in these high-demand jobs is far from over.
Learn Today
H-1B visa → A U.S. work visa allowing companies to hire foreign specialty workers, especially in tech.
Visa extension → Renewal of a visa allowing an employee to continue working legally in the U.S.
Layoff → Termination of employees, usually for cost-cutting, unrelated to employee performance.
Grace period → A 60-day window for laid-off H-1B workers to find new jobs or leave U.S.
Green card → Permanent resident status in the U.S. allowing immigrants to live and work indefinitely.
This Article in a Nutshell
Microsoft faced backlash in July 2025 after laying off thousands and filing thousands of H-1B visas. The company insists layoffs and visa filings are unrelated, with most visas for existing employees. Critics like JD Vance question this, highlighting the complexity of tech jobs and immigration in the U.S.
— By VisaVerge.com
