Key Takeaways
• Microsoft announced 9,000 layoffs in July 2025, impacting 4% of its global workforce of 228,000 employees.
• In 2025, Microsoft submitted over 6,000 H-1B visa applications for specialized tech workers, exceeding 14,000 requests total.
• The 2024 H-1B Modernization Final Rule streamlines visa processes, extends work authorization for students, and enforces program integrity.
Microsoft’s 9,000 Layoffs in 2025: H-1B Visa Policy Changes, Workforce Restructuring, and What It Means for Tech Workers
In early July 2025, Microsoft announced it would lay off about 9,000 employees, marking its largest round of job cuts since 2023. This move is part of a wider trend in 2025, as Microsoft has already let go of more than 15,000 workers this year alone, with earlier layoffs in May and June accounting for over 6,000 job losses. The decision has sparked strong reactions across the tech industry, especially as it comes at a time when Microsoft is also submitting thousands of H-1B visa applications for foreign workers. This situation raises important questions about the future of tech jobs in the United States 🇺🇸, the role of immigration policy, and the impact on both domestic and international workers.
What Happened: Microsoft’s Layoffs and H-1B Visa Applications
Who: Microsoft, one of the world’s largest technology companies, employing over 228,000 people globally.
What: Announced about 9,000 layoffs in July 2025, affecting roughly 4% of its total workforce.
Where: The layoffs impact Microsoft’s global operations, with notable effects in the United States 🇺🇸 and across multiple divisions, including the Microsoft Gaming division.
When: The latest round was announced in early July 2025, following previous layoffs in May and June.
Why: Microsoft’s leadership, including CFO Amy Hood, says the company is “building high-performing teams and increasing agility by reducing layers with fewer managers.” This suggests a focus on restructuring for efficiency and adapting to new business needs, especially as the company invests more in artificial intelligence (AI) and advanced technologies.
How: The layoffs are part of a strategic workforce shift, not just a cost-cutting measure. At the same time, Microsoft has submitted over 6,000 H-1B visa applications for software engineers in 2025, with some reports citing as many as 14,181 H-1B requests in total.
Why the Layoffs and H-1B Visa Applications Are Causing Controversy
The timing of Microsoft’s layoffs and its large number of H-1B visa applications has led to public criticism and debate. Some labor advocates and political voices accuse the company of trying to replace U.S. workers with lower-paid foreign workers. The argument is that while Microsoft is letting go of thousands of employees, it is also seeking to bring in thousands of new workers from abroad, mainly through the H-1B visa program.
However, Microsoft and some tech influencers push back against these claims. They argue that the company is not simply replacing laid-off workers with H-1B visa holders. Instead, they say Microsoft is “rebooting” its workforce, aiming for a global upgrade by bringing in specialized talent needed for new projects, especially in areas like AI and cloud computing.
Understanding the H-1B Visa Program and Recent Changes
The H-1B visa is a nonimmigrant visa that allows U.S. employers to temporarily hire foreign workers in specialty occupations, usually requiring a bachelor’s degree or higher in a specific field. Technology companies like Microsoft rely heavily on the H-1B program to fill roles that require advanced skills, especially in software engineering and related fields.
Key Changes to H-1B Policy in 2024-2025
On December 18, 2024, the U.S. Department of Homeland Security (DHS) announced the H-1B Modernization Final Rule, which took effect on January 17, 2025. This rule introduced several important updates:
- Revised Definition of “Specialty Occupation”: The new rule provides more flexibility and clarity about what jobs qualify for H-1B visas, making it easier for employers to show that a position requires specialized knowledge.
- Extended Cap-Gap Protection for F-1 Students: International students on F-1 visas who are transitioning to H-1B status now have extended work authorization. Instead of ending on October 1, their work permission can last until April 1 of the following year, giving them more time to stay employed while waiting for their H-1B approval.
- Deference to Prior USCIS Decisions: If a worker is applying to extend their H-1B status and nothing has changed, U.S. Citizenship and Immigration Services (USCIS) will generally honor its previous approval, making the process faster and more predictable.
- Stronger Program Integrity: The rule gives the government more power to conduct site visits and enforce penalties if employers do not follow the rules, helping to prevent fraud and abuse.
These changes are designed to streamline the H-1B process, make it easier for companies to hire needed talent, and protect both U.S. and foreign workers by ensuring fair practices.
For more details on the H-1B Modernization Final Rule, you can visit the official USCIS H-1B page.
How the Layoffs Affect Microsoft Employees and the Tech Industry
The impact of Microsoft’s 9,000 layoffs is being felt across several groups:
Union-Represented Workers
Some of the affected employees are members of the Communications Workers of America (CWA) union. The CWA has expressed strong disappointment, stating that the layoffs are especially painful given Microsoft’s record profits and ongoing hiring of H-1B visa holders. The union has pledged to bargain with Microsoft to secure better support and protections for those losing their jobs.
Non-Union Employees
Many non-union workers are also affected, especially in divisions like Microsoft Gaming, where production on several games has been halted. These workers face uncertainty about their future in the tech industry, especially as more companies announce similar job cuts.
H-1B Visa Applicants and Holders
For foreign workers seeking H-1B visas, Microsoft’s continued interest in hiring through this program is a sign that opportunities remain, even as the company restructures. However, the public debate and increased scrutiny could make the process more challenging, with more attention on how companies use the H-1B program during layoffs.
Broader Tech Industry
Microsoft’s actions are part of a larger trend in the tech sector. Many companies are reducing their workforces while also seeking specialized talent from around the world. This reflects the fast-changing needs of the industry, especially as AI and other advanced technologies become more important.
Why Microsoft Says It Needs H-1B Workers
Microsoft’s leadership has explained that the company is not simply cutting costs or replacing U.S. workers with foreign labor. Instead, they say the layoffs and new hiring are part of a plan to “build high-performing teams” and adapt to new business models driven by AI and digital transformation.
According to analysis by VisaVerge.com, Microsoft’s high number of H-1B visa applications is consistent with its strategy to stay competitive in a global market. The company needs workers with specialized skills that are sometimes hard to find in the domestic labor pool. By bringing in talent from around the world, Microsoft aims to fill gaps in areas like AI, cloud computing, and cybersecurity.
What Labor Unions and Advocates Are Saying
Labor unions, especially the CWA, argue that companies like Microsoft should do more to protect domestic workers. They point out that the tech industry has seen record profits in recent years, yet thousands of workers are losing their jobs. The CWA and other groups are calling for:
- Stronger protections for laid-off workers, including better severance packages and job placement support.
- More transparency about how companies decide who to lay off and who to hire, especially when it comes to H-1B visa holders.
- Policy changes to ensure that the H-1B program is used to fill genuine skill gaps, not to replace existing employees with cheaper labor.
The union has also pledged to continue bargaining with Microsoft and to support affected workers through this transition. For those seeking help or more information, the CWA can be reached at 202-434-1168 or by email at [email protected].
Tech Influencers and Industry Experts Weigh In
Not everyone agrees with the criticism of Microsoft’s hiring practices. Some tech influencers and industry analysts argue that the company’s use of the H-1B program is necessary to keep up with rapid changes in technology. They say that:
- The skills needed for new projects, especially in AI, are in short supply in the United States 🇺🇸.
- H-1B visa holders often bring unique expertise that helps companies innovate and stay ahead of global competitors.
- The recent changes to H-1B policy make it easier for companies to hire the best talent, while also protecting workers’ rights and preventing abuse.
These experts believe that Microsoft’s approach is about workforce modernization, not simple replacement. They see the company’s actions as part of a broader shift in the tech industry, where companies must constantly adapt to new technologies and market demands.
The H-1B Modernization Final Rule: What It Means for Employers and Workers
The H-1B Modernization Final Rule is a major update to how the H-1B visa program works. Here’s what it means for different groups:
For Employers Like Microsoft
- Easier to Prove “Specialty Occupation”: The new rule gives more flexibility in showing that a job requires special skills, making it easier to hire foreign workers for complex roles.
- Faster and More Predictable Extensions: If nothing has changed since the last approval, employers can expect quicker decisions on extension requests.
- More Oversight: The government has more power to check that companies are following the rules, which helps prevent misuse of the program.
For H-1B Applicants
- Longer Work Authorization for Students: International students moving from F-1 to H-1B status have more time to stay employed while waiting for their visa.
- Clearer Rules: The new definition of specialty occupation and other updates make it easier to understand what is required for approval.
- More Protection: Stronger enforcement means that workers are less likely to be exploited or treated unfairly.
For Domestic Workers
- More Transparency: The rule aims to make it clearer how companies use the H-1B program, which could help address concerns about job displacement.
- Continued Debate: As companies like Microsoft continue to hire through the H-1B program while laying off domestic workers, the debate over the program’s impact is likely to continue.
What’s Next for Microsoft, H-1B Visa Policy, and Tech Workers
Looking ahead, several trends are likely to shape the future:
- Microsoft’s Workforce Strategy: The company is expected to keep adjusting its workforce throughout 2025, possibly with more layoffs or restructuring as it adapts to new technologies and market conditions.
- H-1B Policy Impact: The H-1B Modernization Final Rule will influence how Microsoft and other tech companies manage their global talent pipelines, with clearer rules and faster processes.
- Labor Union Actions: Unions like the CWA will continue to push for better protections and benefits for laid-off workers, and may seek further policy changes.
- Ongoing Public Debate: The discussion about H-1B visa use during layoffs is not going away. Lawmakers and advocacy groups may call for more changes to ensure the program is fair for both domestic and foreign workers.
Practical Guidance for Affected Workers and Job Seekers
If you are a Microsoft employee affected by the layoffs, or if you are considering applying for an H-1B visa, here are some steps you can take:
- For Laid-Off Workers:
- Contact your union representative or the CWA for support and information about your rights.
- Review your severance package and ask about job placement assistance.
- Consider retraining or upskilling in areas like AI, cloud computing, or cybersecurity, which are in high demand.
- For H-1B Applicants:
- Make sure you understand the new rules under the H-1B Modernization Final Rule. You can find official information and guidance on the USCIS H-1B page.
- Work closely with your employer to ensure all paperwork is complete and accurate.
- Stay informed about any changes to immigration policy that could affect your application.
- For All Tech Workers:
- Keep your skills up to date, especially in fast-growing areas like AI and cloud computing.
- Stay connected with professional networks and industry groups for job leads and support.
Conclusion: A Changing Landscape for Tech Jobs and Immigration
Microsoft’s 9,000 layoffs in 2025, combined with its large number of H-1B visa applications, highlight the complex relationship between workforce needs, immigration policy, and the fast-changing tech industry. While the company says it is modernizing its teams to stay competitive, labor unions and some public voices worry about the impact on domestic workers.
The recent changes to H-1B policy aim to balance the needs of employers and workers, making it easier to hire specialized talent while protecting against abuse. As the debate continues, it is important for all stakeholders—workers, employers, policymakers, and the public—to stay informed and engaged.
For the latest updates on H-1B visas and official guidance, visit the USCIS H-1B Specialty Occupations page. If you are affected by layoffs or seeking support, reach out to your union or professional networks for help.
As reported by VisaVerge.com, the intersection of layoffs, immigration policy, and global talent needs will remain a key issue for the tech industry in 2025 and beyond. Staying informed and proactive is the best way to navigate these changes and find new opportunities in a rapidly evolving job market.
Learn Today
H-1B Visa → A U.S. visa allowing employers to hire foreign workers in specialized occupations needing advanced degrees.
Layoffs → Company-initiated job cuts affecting employees due to restructuring or cost-saving measures.
Specialty Occupation → Jobs requiring specialized knowledge, typically needing at least a bachelor’s degree, qualifying for H-1B visas.
Cap-Gap Protection → Work authorization extension for F-1 students transitioning to H-1B status, preventing employment gaps.
H-1B Modernization Final Rule → A 2024 policy update improving visa processing, enforcement, and extending work rights for applicants.
This Article in a Nutshell
Microsoft’s 9,000 layoffs in 2025 coincide with over 6,000 H-1B visa applications, sparking debate on workforce restructuring and immigration policy. The company aims to modernize teams amid AI growth, while unions call for better protections. New visa rules ease hiring but increase oversight to protect workers.
— By VisaVerge.com
