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Microsoft Denies Foreign-Worker Visas Behind Xbox Layoffs

Since news broke of Microsoft's recent round of mass layoffs --which affected 1,600 people immediately and will reach double that number over the next year--a number of reports have claimed that mass approvals of foreign-worker visas were behind the decision.

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Microsoft Denies Foreign-Worker Visas Behind Xbox Layoffs

Since news broke of Microsoft's recent round of mass layoffs --which affected 1,600 people immediately and will reach double that number over the next year--a number of reports have claimed that mass approvals of foreign-worker visas were behind the decision.

Microsoft communications lead Frank X. Shaw has refuted what he calls 'bad information.' In a Twitter post, Shaw clarified that while there are Microsoft workers using H-1B visas, they are 'not specific to Xbox and represent a small percentage of Microsoft's overall workforce. And the majority of the roles impacted were not American roles.' Shaw emphasized that the recent workforce changes were made to restructure the Xbox business due to health concerns, not to replace employees with foreign workers.

Shaw's comments followed reports that Microsoft was approved for over 2,200 H-1B visas this year. Fox News was informed by Microsoft that H-1B employees were also affected by the layoffs. The Xbox layoffs, which saw a 20% reduction in the workforce and the separation of five studios, are some of the largest in the gaming industry. While Double Fine and Compulsion Games will become independent studios again, Ninja Theory and Undead Labs are being sold to an undisclosed buyer. Microsoft is exploring options for the sale or separation of Arkane. Even the remaining studios, like id Software, were significantly impacted, with id Software losing about half its staff during the launch of the latest Doom: The Dark Ages expansion.

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