Microsoft H-1B Visa Use Analyzed Amid Layoffs and Suspensions

Microsoft (MSFT) is under scrutiny following accusations from Vice President JD Vance that it replaced 6,000 laid-off workers in 2025 with foreign hires on H-1B visas. The claims come as the Trump administration suspended eight tech companies from sponsoring green card applications. This action, however, does not impact Microsoft's H-1B visas, which remain unaffected as they are temporary work permits.

Data from the U.S. Citizenship and Immigration Services shows Microsoft had 6,258 H-1B visa approvals, making it the third-largest sponsor, following Amazon and Meta. The data indicates that about two-thirds of these workers were already employed by Microsoft. Larger rivals Amazon and Meta had 19,178 and 6,294 H-1B approvals respectively, with Amazon leading new H-1B admissions.

This matter highlights a broader federal investigation into alleged visa fraud, targeting major universities as well. The market impact may include changes in perceptions of Microsoft's hiring practices. For investors, these developments could signal potential shifts in both government relations and workforce strategies at Microsoft.