Microsoft’s recent decision to lay off 9,000 employees has ignited controversy over its use of the H-1B visa program, with critics alleging the company is replacing American workers with foreign hires. Reports claiming Microsoft filed 14,181 H-1B-related petitions in 2024 have intensified scrutiny, particularly as layoffs affected roles like software developers, IT project managers, and engineers.

Amid these concerns, Indian-origin tech influencer Debarghya ‘Deedy’ Das offered a counter-narrative, clarifying that most of Microsoft’s H-1B petitions are renewals—a standard legal requirement every three years. Das noted that only around 1,200 of the applications were for new H-1B hires, representing just 0.5% of Microsoft’s total workforce and about 10% of its new hires in 2024. He called the replacement narrative "misleading," emphasizing the need to understand the data context.

Fueling suspicion, a report claims Microsoft spent $2.35 million on lobbying efforts with U.S. agencies tied to immigration and labor, just weeks before the layoffs. While Das’s clarification sheds light on the complexity of H-1B usage, the debate underscores rising demands for transparency in tech hiring practices—especially amid rising layoffs across the sector.

Microsoft is facing growing backlash after laying off 9,000 employees in 2024, with critics pointing to the company’s heavy H-1B visa activity as evidence of alleged workforce replacement. A report suggesting Microsoft filed 14,181 H-1B, H-1B1, and E-3 visa petitions has led to accusations that the layoffs were coordinated with foreign hiring efforts.

However, Indian-origin tech influencer Deedy Das has challenged these claims, explaining that the majority of Microsoft's H-1B filings are renewals, not new hires. According to Das, only about 1,200 new H-1B applications were filed this year—roughly 25% of all petitions and a mere 0.5% of Microsoft's total workforce. He stressed that headlines suggesting a one-to-one replacement of laid-off workers with H-1B hires are deeply misleading.

The situation escalated further when it was revealed that Microsoft spent $2.35 million lobbying key U.S. departments responsible for labor and immigration just weeks before the layoffs. While this raises concerns about timing and intent, Das’s clarification adds nuance to the ongoing discussion.

As roles like software developers and IT managers are impacted, the episode highlights the tension between cost-cutting, global talent acquisition, and local workforce priorities, pushing for greater transparency in tech sector employment practices.