Microsoft has come under scrutiny following allegations of misusing the H-1B visa programme to replace American workers after announcing layoffs. The tech giant recently laid off 9,000 employees, prompting accusations that it is leveraging the H-1B system to bring in lower-paid foreign labour. However, these claims have been challenged by Indian-origin tech influencer Debarghya ‘Deedy’ Das, who argues that the narrative is misleading.
According to Das, the majority of Microsoft’s H-1B petitions are renewals, which must be filed every three years. Das highlighted that in 2024, Microsoft had approximately 1,200 new H-1B applications, constituting about 25% of all H-1B petitions, 10% of new hires, and merely 0.5% of the company’s total workforce. He emphasised that “Microsoft laid off 9000 people and replaced them with 14,181 H-1Bs” is a misleading narrative.
The scrutiny intensified with reports claiming Microsoft was among the top applicants for H-1B, H-1B1, and E-3 visas, with 14,181 applications filed, a figure that stirs controversy amidst the layoffs. Critics argue the timing of visa applications and layoffs appears coordinated, adding to the scepticism surrounding Microsoft’s labour practices.
A report suggested that “just 30 days before the mass layoffs began”, Microsoft spent $2.35 million on lobbying efforts with the US Departments of Labour and Homeland Security. These efforts allegedly targeted the agencies responsible for H-1B visa approvals, further fuelling the narrative of workforce replacement through foreign hires. This has led to increased calls for transparency in how companies manage their workforce amidst such significant changes.
However, the reality painted by Das points to a significant portion of H-1B petitions being renewals, rather than new applications. He underscored that “Most petitions are renewals that need to be done every 3yrs. In 2024, Microsoft had ~1200 new H-1Bs:—~25% of all H-1B petitions—~10% of new headcount—0.5% of total employees”.
Despite this clarification, the issue remains contentious, especially as layoffs have surged across the tech industry. Microsoft, like many tech companies, is balancing between the demands of its diverse workforce and the competitive pressures of the global market. “Microsoft H1-B request not for ‘upboots’ after layoffs, influencer says petitions are renewals”, reflecting a counter-narrative to prevalent criticisms.
In response to the layoffs, roles most impacted include software developers, electronics engineers, and IT project managers. “What do we know about the layoffs?” remains a critical question as stakeholders seek transparency and accountability in Microsoft’s employment strategies.
As the debate over H-1B visa utilisation continues, tech companies face increasing demands to clarify their hiring practices. The narrative of “Microsoft just cut thousands of American workers…yet they’ve already requested 14,181 more H-1B workers this year, and it’s only Q2.” highlights the tension between maintaining a competitive edge and addressing workforce concerns.