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Microsoft XBOX Layoffs Spark Backlash

WireByte Staff · July 10, 2026

Microsoft's XBOX faces criticism after laying off 1,600 employees despite approving 2,273 foreign worker visas

Key points

  • Microsoft plans to lay off 4,800 employees, including 1,600 from its XBOX gaming division
  • The company received approval for 2,273 employer-sponsored foreign workers under the H-1B visa program
  • Critics claim American jobs are being replaced by foreigners to cut labor costs
  • A Microsoft spokesperson stated that layoff decisions were based on business need, not visa status
  • H-1B employees were also impacted by job eliminations in the US
  • The layoffs have sparked social media backlash, with some users calling for accountability

Microsoft's XBOX division is facing significant backlash after announcing plans to lay off 1,600 employees. This move comes despite the company receiving approval for 2,273 foreign worker visas under the H-1B program. Critics argue that this decision prioritizes cost-cutting over retaining American jobs. In response to the criticism, a Microsoft spokesperson emphasized that layoff decisions were based on business needs rather than visa status. The situation highlights the ongoing debate about the impact of foreign worker visas on the US job market.

Sources

WireByte Staff — Editorial Team

The WireByte editorial team synthesises technology news from multiple primary sources, verifies the facts, and links every source. Articles are produced with AI assistance and reviewed under our editorial policy.