As the United States grapples with waves of layoffs in the tech sector, a heated debate has reignited over the use of the H-1B visa programme. The controversy gained momentum after US Vice President JD Vance slammed Microsoft for allegedly replacing American workers with H-1B visa holders even as the company posts record profits and ramps up investments in artificial intelligence.
Following this, a widely circulated post on X highlighted the growing frustration among American workers. “What’s happening at Microsoft should scare every working American. The layoffs. The memo. The H1B requests. Hardworking Americans are being replaced, repackaged, or pushed out… while companies claim ‘headcount is unchanged.’ Companies should be able to grow and profit, but not by putting American workers in the corner,” the post read.
“The H-1B optics situation at Microsoft must be bad, Nadella sent out a memo of reassurance 24 hours after Vance exposed 9,000+ job cuts? Crazy right? Ya’ll, when CEOs roll out “transparency” during layoffs, it’s not for your benefit. It’s choreography. Nadella’s memo is textbook right now…. suppress panic, keep the machine moving. Don’t question anything. I’ll hand it to them… it’s clever… but this feels less corporate cheerleader style and more narrative control,” the X user added in another post.
This post was in response to Republican Representative Marjorie Taylor Greene, who wrote, “There is no scenario where I will support replacing American jobs with foreign workers or AI/robotics on a mass scale. This is the destruction of the middle class…”
What’s happening at Microsoft should scare every working American.
The layoffs.
The memo.
The H1B requests.@JDVance, @RepMTG and countless others that realize that our labor market situation is waving a red flag.
This isn’t left or right. This is real. And it’s happening in… https://t.co/opX15G79Nx pic.twitter.com/YfLqmpo0iM
— Amanda Goodall (@thejobchick) July 24, 2025
Layoffs and H-1B visa
Microsoft’s cost-cutting drive comes at a time when its stock is soaring. On 9 July, it crossed the $500 mark for the first time and has seen a 21% rise so far this year. The company’s net income over the past three fiscal quarters is estimated at $75 billion, while it has spent $80 billion on AI infrastructure.
Despite these strong figures, around 9,000 employees have been laid off this year, 2,000 of them reportedly due to underperformance, with the rest coinciding with the company’s increasing reliance on AI. Microsoft is scheduled to announce its Q4 FY25 earnings on 30 July.
JD Vance, speaking on Wednesday, questioned the logic of big tech firms laying off thousands while simultaneously applying for thousands of work visas. “That doesn’t totally make sense to me,” he said, pointing specifically to Microsoft, which has reportedly filed over 6,000 H-1B visa applications since October 2024.
This comes amid reports that Microsoft has laid off more than 220,000 employees over the past year. While CEO Satya Nadella issued a memo claiming the company’s “overall headcount is relatively unchanged,” he acknowledged the contradiction between the layoffs and Microsoft’s continued growth.
“Some of the talent and expertise in our industry and at Microsoft is being recognised and rewarded at levels never seen before,” Nadella wrote. “And yet, at the same time, we’ve undergone layoffs.”
Critics argue that the claim of a stable headcount may mask a deeper issue that American workers are being edged out, while H-1B visa holders are either retained or newly brought in.
H-1B selection process
Amid rising concern, US President Donald Trump is reportedly reconsidering the H-1B selection process. Though details remain scarce, the proposed reforms are expected to prioritise safeguarding American jobs and curbing corporate misuse.
The matter has gained a spotlight, particularly as laid-off H-1B workers report receiving notices from US Homeland Security well ahead of the usual 60-day grace period, suggesting systemic churn within both American and immigrant tech workforces.