Microsoft Denies Reports of 9,000 Layoffs Amid Trump’s Criticism on Hiring Foreign Workers

The statement comes after former U.S. President Donald Trump urged major tech firms like Google and Microsoft to stop hiring in India, accusing them of favoring foreign workers over Americans.

False Reports on Microsoft Layoffs Surface

Earlier, several reports suggested that Microsoft was preparing to cut 9,000 jobs while simultaneously applying for nearly 14,000 H-1B visas. Critics alleged that the move was aimed at replacing American employees with a cheaper foreign workforce to reduce costs.

Addressing these claims, Nadella stated that while the company continues to make strategic changes due to rising demand in AI, cloud technology, and new business models, most H-1B visa applications are for renewals, not new hires.

Trump’s Statement Targets Indian IT Hiring

During an AI summit in Washington, Trump criticized U.S. tech giants for outsourcing jobs and hiring foreign talent, particularly from India, instead of prioritizing American workers. He warned that such practices undermine local employment opportunities, calling for stricter measures on work visas.

Impact on India’s IT Sector

This controversy could have significant implications for India’s $245 billion IT industry. Companies like Microsoft and Google employ thousands of professionals in Indian tech hubs such as Bengaluru, Hyderabad, and Pune. According to U.S. immigration data, nearly 72% of H-1B visas issued in 2023 went to Indian professionals, mostly in AI, cybersecurity, and data science roles.

If Trump’s suggested policies are implemented, H-1B visa rules may tighten, making it harder for Indian engineers to work in the U.S. This could also slow hiring in India, adding pressure on IT companies and startups.

Microsoft Workforce and Background

As of June 2024, Microsoft employs approximately 228,000 people globally, despite previous rounds of layoffs in the past two years. Founded in 1975 by Bill Gates and Paul Allen, Microsoft started as a software provider for early personal computers and has since grown into a global tech leader in software, cloud, and AI solutions.