US Vice President criticizes Microsoft for 9,000 job cuts amid ongoing H-1B visa hiring

Microsoft has not officially confirmed affected departments, but reports indicate significant cuts in the Xbox gaming division, with internal emails revealing the cancellation of projects like Perfect Dark’s revival and the game Everwild amid restructuring efforts

Microsoft has announced plans to reduce its workforce by up to 9,000 jobs in 2025, marking another significant round of layoffs for the tech giant this year. The cuts represent nearly 4% of Microsoft’s global full-time staff, which stood at around 228,000 employees as of mid-2024.

The US Vice President, J.D. Vance, publicly criticized the move, highlighting concerns over the company’s simultaneous hiring of workers on H-1B visas. “We want the brightest minds to make America their home. But we don’t want companies to fire 9,000 American workers and then claim they can’t find talent here,” Vance said in a viral video.

While Microsoft has not officially confirmed which departments will be affected, industry reports suggest that the Xbox gaming division could see notable reductions. Internal communications, reported by outlets such as The Verge and IGN, revealed that projects including the revival of the popular first-person shooter franchise Perfect Dark and the game Everwild have been cancelled as part of restructuring efforts.

This latest round follows earlier layoffs in May when Microsoft cut approximately 6,000 positions, representing about 3% of its workforce — the largest such reduction in over two years. These layoffs coincided with Microsoft’s intensified investments in artificial intelligence (AI), including a commitment of roughly $80 billion to build large data centers to support AI development.

Further cuts occurred in June, with around 300 employees laid off at Microsoft’s Redmond, Washington headquarters, following nearly 2,000 layoffs in the broader Puget Sound region in May, according to state employment filings.

Microsoft’s restructuring reflects ongoing shifts within the tech industry as companies recalibrate staffing amid evolving business priorities and growing investments in emerging technologies.