Microsoft Denies Layoffs Linked to H-1B Visas Amidst Senator’s Scrutiny

Tech Giant Responds to Claims of Prioritizing Foreign Workers Over American Employees

Microsoft is pushing back against accusations that it is replacing American workers with foreign hires through the H-1B visa program. The company asserts that its visa applications are entirely disconnected from its recent workforce reductions.

Controversy Ignited by Senator’s Remarks

The debate intensified after Senator **JD Vance** publicly criticized Microsoft’s employment practices. He expressed skepticism over the company’s decision to lay off thousands of American employees while simultaneously seeking foreign talent via visa applications.

“You see some large technology companies where they will release 9,000 employees and then apply for many overseas visas. And I somehow wonder; it doesn’t make sense for me.”

—JD Vance, U.S. Senator

Senator **Vance** further elaborated on his concerns, calling the narrative of needing foreign staff after domestic layoffs “Bulls**t.” He emphasized the desire to keep top talent in America and foster domestic company growth.

Microsoft’s Defense: H-1B Visas Not Tied to Layoffs

In a statement provided to CFO Dive, a Microsoft representative clarified the company’s position. They stated that 78% of H-1B petitions over the past year were for extending existing employee visas, not for bringing in new foreign workers to the U.S.

Furthermore, Microsoft highlighted that many H-1B employees were also affected by the recent layoffs, underscoring that the visa process is not a direct replacement strategy for its American workforce.

The H-1B Visa Program Under the Spotlight

The H-1B visa program, designed to allow companies to employ foreign workers in specialized occupations, has long been a contentious issue. The program faces ongoing scrutiny, particularly in light of past administrations’ efforts to reform or restrict its use.

The tech industry heavily relies on the H-1B visa to access a global talent pool. However, this reliance has often sparked debate, with critics arguing it can depress wages and displace American workers. As of 2023, the U.S. Department of Labor received over 300,000 H-1B petitions, illustrating the program’s scale. (Source: U.S. Department of Labor).