Microsoft Denies Foreign Visa Claims Amidst Major Xbox Layoffs
In a surprising turn of events, Microsoft has recently faced backlash over its decision to lay off a significant portion of its Xbox staff. With 1,600 employees affected immediately and plans for that number to double within the next year, rumors quickly spread that the layoffs were linked to the approval of foreign-worker visas. However, Frank X. Shaw, head of communications at Microsoft, has stepped in to clarify this misconception.
Taking to Twitter, Shaw declared that while there are indeed some employees on H-1B visas within the company, they do not specifically pertain to the Xbox division and represent only a small fraction of Microsoft’s overall workforce. He emphasized that the majority of the positions impacted by these layoffs were not American roles.
Shaw explained that the recent adjustments in the workforce were part of a necessary restructuring within the Xbox business, which he described as being in an “unhealthy” state. He firmly stated that these layoffs were not aimed at replacing American employees with foreign workers.
His remarks come in the wake of several conservative news outlets highlighting that Microsoft had gained approval for over 2,200 H-1B visas this year. Interestingly, prior to the publication of some reports, the company acknowledged to these outlets that H-1B workers were indeed among those laid off.
The current layoffs mark one of the most significant workforce reductions in the gaming sector. Alongside trimming about 20% of the Xbox team, Microsoft has also made the tough choice to part ways with five game studios. Notably, Double Fine and Compulsion Games will now operate independently, while Ninja Theory and Undead Labs are up for sale to undisclosed buyers. Meanwhile, Microsoft is also contemplating the future of Arkane and its potential sale.
Even the studios that are remaining open haven’t escaped the fallout unscathed. A notable casualty includes id Software, which experienced a staggering loss of around 50% of its workforce just as it was gearing up to launch the latest expansion for Doom: The Dark Ages.