Microsoft layoffs: As much as 5,500 jobs in danger as AI push sparks contemporary H1-B debate
Microsoft is making ready to chop round 5,500 jobs in one other spherical of layoffs because it continues shifting billions of {dollars} in the direction of synthetic intelligence (AI), with the anticipated transfer additionally reigniting debate over the corporate’s use of the H1-B visa programme.In line with the Enterprise Insider, the corporate may announce the layoffs as early as subsequent week. The deliberate cuts are anticipated to have an effect on fewer than 2.5 per cent of Microsoft’s world workforce. Primarily based on its headcount of about 228,000 staff as of 30 June, that will quantity to roughly 5,500 jobs.The reductions are anticipated to span a number of enterprise models, together with gross sales, consulting and the Xbox gaming division. One particular person conversant in the plans advised Enterprise Insider that some affected staff may very well be provided different roles inside Microsoft after the announcement.The transfer follows earlier rounds of job cuts. Microsoft laid off about 6,000 staff earlier than saying one other discount of roughly 9,000 jobs in July 2025, representing almost 4 per cent of its workforce. This spherical is predicted to be smaller after many eligible US staff accepted a voluntary retirement programme launched earlier this 12 months. The retirement scheme was provided to staff at degree 67 and under who met the corporate’s age and repair necessities. Gross sales staff on commission-based pay weren’t eligible.Microsoft has historically reviewed its workforce firstly of a brand new monetary 12 months. On the identical time, it has continued to extend spending on AI and cloud infrastructure. The corporate invested greater than $100 billion in AI and cloud initiatives throughout the 2026 monetary 12 months, with a lot of the spending directed in the direction of AI chips and associated infrastructure.The Xbox division can also be anticipated to bear important restructuring after years of heavy funding in gaming content material, {hardware} and platforms. Earlier this 12 months, Xbox Gaming CEO Asha Sharma advised staff the enterprise wanted a “reset”.The anticipated job cuts have additionally revived criticism of Microsoft’s continued hiring of international staff via the H1-B visa programme.One viral put up on X claimed the corporate has remained among the many six largest H-1B sponsors in US since 2020 regardless of decreasing its home workforce.The put up learn: “Microsoft has been the sixth largest H-1B filer within the nation since 2020, bringing in international staff 12 months after 12 months even because it cuts American jobs. Simply months in the past, it pushed quiet buyouts on older US workers. A couple of third of the 9,000 eligible took the exit. This spherical lands on prime of that. LinkedIn, which Microsoft owns outright, minimize 875 jobs this 12 months, about 5% of its workers, whilst income grew 12% and so they continued to file H-1B purposes. Xbox takes the toughest hit. Beneath new CEO Asha Sharma’s ‘reset,’ its layoffs are reportedly to be the biggest single layoff in gaming historical past. Report earnings, and nonetheless one of many prime H-1B sponsors in America. Hundreds of American jobs, gone.”Meta has introduced plans to chop about 10 per cent of its workforce this 12 months, whereas Amazon has stated it should eradicate round 16,000 jobs globally. Trade knowledge additionally reveals that know-how corporations in US have introduced greater than 123,000 job cuts in 2026, with rising funding in AI cited as a serious purpose behind lots of the reductions.
