Microsoft has now reportedly laid off thousands of U.S.-based employees in recent months, even as it ramped up applications to hire foreign workers for the same roles, raising concerns among labor advocates and former staff about outsourcing and wage suppression.
Between May and June, Microsoft cut more than 2,000 workers in Washington state alone, including over 800 software engineers.
The layoffs were part of broader workforce reductions that affected more than 6,000 positions companywide across multiple divisions.
Shortly after these cuts, Microsoft filed thousands of applications with the U.S. Department of Labor for H-1B visas — the majority of them for the same job titles, locations, and responsibilities as those recently vacated.
Microsoft's strategic shift🔁
Out with the Americans, in with the cheaper foreign workers
❌️Microsoft laid off 817 U.S. software engineers in Redmond, then requested 2,300 foreign workers for the same roles in the same location
❌️Total H-1B filings: 14,181.
82% below the… https://t.co/RDUOtTErKU— Alb (@amandalouise416) July 1, 2025
The company’s filings indicate plans to bring in thousands of foreign workers on temporary visas to fill roles in software engineering, data analysis, and related technical fields.
While Microsoft has long employed workers through the H-1B visa program, the timing of the layoffs and subsequent visa applications has sparked criticism that the company is using the program to lower labor costs and displace domestic talent.
Labor experts have noted that many of the positions being advertised to foreign workers come with salaries at or below the prevailing wage level in their respective regions.
This practice, though legal under current labor rules, has drawn scrutiny from those who argue it undermines compensation standards for American workers and leaves H-1B recipients vulnerable to exploitation.
The company attributed the layoffs to changing business needs, including a strategic shift toward artificial intelligence and cloud services.
Native-born workers: +830K
Foreign-born workers: -348K pic.twitter.com/9nQUTQhy4f— zerohedge (@zerohedge) July 3, 2025
Microsoft has also significantly expanded its footprint in India, announcing a $3 billion investment earlier this year to build AI infrastructure and train millions of workers.
Despite the company’s global restructuring, the decision to cut U.S. jobs while seeking thousands of visa workers has prompted renewed calls for reform of the H-1B system.
Critics argue the program, originally intended to fill talent gaps, is increasingly being used by large corporations to cut costs.
Employees affected by the layoffs said they received little notice and were not given the opportunity to reapply for their former positions. Some reported seeing their job descriptions reposted within weeks, but with new location or visa requirements attached.
As Microsoft continues to reshape its workforce, lawmakers and labor advocates are likely to increase pressure on both the company and regulators to ensure greater transparency and protections for American workers.
[READ MORE: CBS Settles Lawsuit Brought Against it by Trump for $16 Million]
