A massive Microsoft jobs purge is under way — and it's only the beginning



With just a few months under new leadership in the gaming division, Microsoft is set to perform a significant overhaul of Xbox, including a number of job cuts in the process.

Microsoft's Xbox is planning some major changes to the company — with some staff reductions starting as soon as Monday — under the new CEO, Asha Sharma.

'I also want to be direct that the roles eliminated today are not being replaced by AI. At the same time, what is true is that AI is changing how work gets done.'

Bloomberg reported that Xbox plans to lay off 3,200 workers in that division alone. Some 1,600 jobs were reportedly eliminated on Monday, and 1,600 more are planned over the next 12 months.

Planned cuts across Microsoft, including outside Xbox, on Monday amounted to 6,400 employees, according to Bloomberg.

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“We are still early on this journey, and there will be more changes ahead; other parts of our business will need to make similar changes,” Chief People Officer Amy Coleman wrote in a memo published on Monday.

In addition to the staff reductions, Xbox is seemingly gearing up to reverse course on several growth initiatives overseen by Sharma's predecessor, Phil Spencer.

Xbox will reportedly sell or attempt to sell five different studios in the near future, all of which were acquired under Spencer in an attempt to grow the company.

These studios include Ninja Theory, Undead Labs, Double Fine, and Compulsion Games, with a view to sell a fifth studio based in Lyon, France, that has yet to begin the consultation process to "review potential strategic options." Bloomberg reported this process will take longer due to strict labor laws in the country.

Sharma wrote that those acquisitions over the past decade "created meaningful value," but "they did not grow at the pace we expected," adding that "in a typical year" Xbox was losing 64 cents for every dollar it invested.

Sharma said that the restructuring would affect several internal studios as well, including Activision, Bethesda/ZeniMax, Blizzard, King, Mojang, and XBOX Game Studios. She emphasized the importance of Mojang (Minecraft) and King (Candy Crush) and added that they would now report directly to her as the two consistent cash cows of the company.

While many employees worry that their jobs will be replaced by artificial intelligence, especially in the tech industry, Coleman addressed this issue head-on: "I also want to be direct that the roles eliminated today are not being replaced by AI. At the same time, what is true is that AI is changing how work gets done. Some of the tasks we do every day can now be automated, and that means we all need to keep learning, keep building new skills, and keep adapting as the work evolves."

This announcement comes just months after Microsoft's first-ever buyout program for retirement-age employees in the United States. Coleman's announcement reported that 30% of eligible employees chose to participate in the program. In April, CNBC reported that there were roughly 125,000 U.S. Microsoft employees as of June 2025 and that about 7% of the workforce was eligible for this one-time program.

Assuming these figures are accurate, this program may have bought out up to around 2,600 more employees earlier this year.

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America last: Is Big Tech hiding jobs from US citizens to hire cheaper foreign labor from India and China?



Reports indicate that the American tech job market is slowing down significantly, making it increasingly more difficult for qualified individuals to find employment. However, a team of technology professionals contends that jobs are out there; they are just not being advertised to American talent.

The Economic Policy Institute found that the top 30 H-1B employers hired 34,000 new foreign workers in 2022, yet laid off at least 85,000 between 2022 and early 2023, further fueling concerns that companies are booting Americans for foreign nationals to keep wages lower.

'We were shocked to discover these discriminatory practices are still widespread across major American companies today, keeping Americans out of jobs in their own country.'

Indian nationals accounted for roughly 71% of H-1B workers in 2024, while Chinese nationals ranked second, with 12%. Indian and Chinese nationals also represent the largest groups of foreign-born STEM workers, according to the American Immigration Council.

The background

Reports like this sparked action from fed-up tech workers who decided to establish Jobs.Now, an online job board featuring a list of positions sourced from "legally mandated PERM labor market test locations" in newspaper classified advertisements.

PERM is a permanent labor certification issued by the Department of Labor, allowing employers to hire foreign talent to work in the United States. This certification sets workers on a path to receive a green card. Many of these candidates are already working for the employer on temporary visas, such as the H-1B or the Optional Practical Training programs.

The tech workers were driven to start the online job board after Apple and Facebook settled worker discrimination lawsuits with the Department of Justice.

In 2021, Facebook agreed to pay $4.75 million in civil penalties and up to $9.5 million to eligible victims after it was accused of “routinely” refusing to “recruit, consider, or hire U.S. workers” for positions it had reserved for temporary visa holders.

Similarly, in 2023, Apple agreed to pay $6.75 million in civil penalties and establish an $18.25 million back pay fund for victims after the DOJ claimed the company “illegally discriminated in hiring and recruitment against U.S. citizens and certain non-U.S. citizens.”

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“We were shocked to discover these discriminatory practices are still widespread across major American companies today, keeping Americans out of jobs in their own country,” Jobs.Now told Blaze News. “We started Jobs.Now to fight against these illegal practices and help Americans find good jobs.”

Sneaky tactics

Jobs.Now warned that some companies — particularly those seeking to fill engineering, data science, finance, accounting, and biotechnology positions — will try to hide opportunities from American workers to favor their existing H-1B employee and provide lower wages.

Under PERM laws, a company seeking to hire a foreign national must demonstrate "that there are not sufficient U.S. workers able, willing, qualified, and available to accept the job opportunity in the area of intended employment and that employment of the foreign worker will not adversely affect the wages and working conditions of similarly employed U.S. workers."

To demonstrate this, the employer must advertise the position in two Sunday newspapers and select three additional recruitment steps, which can include advertising the position at job fairs, the employer's website, an online job board, and on radio and television, among other options.

'Jobs.Now highlights those ads, but that doesn't mean the company is running a new search. It's just about meeting the compliance rules.’

The employer can hire a foreign national via the PERM process only if there are no other minimally qualified U.S. citizens or existing green card holders available.

"As a result, they put ads in newspapers with obscure application methods aiming to hide the listing from Americans, so they will not receive applications and will be able to sponsor their preferred immigrant candidate for a green card to fill the job," Jobs.Now told Blaze News.

Jobs.Now explained that it has found some job postings that feature "hidden" characteristics — including "not being posted on the company website, not being posted on mainstream job boards, and requiring email or paper mail applications" — that could result in fewer American applicants.

Jobs.Now has also highlighted postings that refer individuals to send their applications to immigration professionals and law firms, rather than human resources workers.

"To maintain business continuity, or the wage arbitrage of hiring lower-paid immigrant workers, companies prefer to keep these existing employees rather than seek American citizens as required for permanent roles," Jobs.Now stated. "They commonly treat PERM labor market tests as compliance exercises where they fill out paperwork, rather than actual hiring processes. As a result, they often direct applications to immigration professionals or law firms rather than ordinary recruiters."

RELATED: Microsoft rejects idea that company is replacing American workers with foreign labor after massive layoffs

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Clashing views

While Jobs.Now highlights the labor market tests as being treated as mere formalities rather than genuine efforts to recruit American workers, recruiter Mark Fabela affirmed that these postings are meant to satisfy regulatory requirements and are "not about launching a broad hiring campaign." Though, perspectives differ on whether this complies with the law.

"Instead, it's about documenting for the Department of Labor that no qualified U.S. workers stepped forward during the recruitment phase. That's why you see the mandated postings in newspapers and other outlets," Fabela told Blaze News. "Jobs.Now highlights those ads, but that doesn't mean the company is running a new search. It's just about meeting the compliance rules."

"By the time these ads appear, the role is often already filled by someone, usually an H-1B worker the company is already employing," he said, dismissing Jobs.Now's claim that the posts aimed to hide jobs from Americans.

‘Only after no US worker can be found will the PERM application be approved. Whether the foreign worker is already performing the job is immaterial.’

However, other experts challenge Fabela's perspective, asserting that the law requires genuine efforts to hire Americans, even through the labor market tests posted in the newspaper.

“Employers must conduct good-faith recruitment of U.S. workers and offer that position to any qualified and willing U.S. applicant,” Dr. Ron Hira, an associate professor in the Department of Political Science at Howard University, told Blaze News. “Only after no U.S. worker can be found will the PERM application be approved. Whether the foreign worker is already performing the job is immaterial.”

Hira called the law “crystal clear” but noted that even the DOL “has been guilty of administrative malpractice in enforcing PERM regulations.”

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Photographer: Krisztian Bocsi/Bloomberg via Getty Images

“For the past few decades, DOL has turned a blind eye to rampant employer discrimination against U.S. workers in the PERM recruitment process,” he explained. “Everyone, including DOL, knows that discrimination is more common than not in PERM applications.”

The DOL admitted in a 2020 report that the PERM program “relentlessly has employers not complying with the qualifying criteria.” It also stated that it has “limited authority over the H-1B program as it can only deny incomplete and obviously inaccurate applications and conduct complaint-based investigations, challenges in protecting the welfare of the nation’s workforce.”

“Therefore, the PERM and H-1B programs remain highly susceptible to fraud,” the DOL concluded.

Hira called for Americans to petition the Trump administration “to start enforcing the plain language of the law.”

‘Americans don't have a real shot at these jobs; they were already displaced long ago when the employer hired the worker on a temporary visa.’

Jessica Vaughan, the director of policy studies for the Center for Immigration Studies, echoed Hira's concerns about enforcement failures, calling the PERM process “a charade.”

“The reality is that nearly all of these employers already have a foreign worker in the job and are just seeking to check off the boxes that the law requires,” Vaughan told Blaze News. “Americans don't have a real shot at these jobs; they were already displaced long ago when the employer hired the worker on a temporary visa.”

Congress fueled some of these issues by adjusting the eligibility criteria for green cards to more closely align with those for temporary visas, Vaughan explained.

“That means there are more temporary workers now seeking to get green cards to stay permanently, and they are willing to work for less money on that promise. However, they have a long wait for the green cards, and the employers don't want to have to consider Americans for these jobs, since they promised them to the foreign workers, and they can get away with paying them less,” Vaughan stated.

Concerning any “good faith” efforts to find Americans to fill these positions, Vaughan reasoned that there is “little enforcement of the requirement” because employers have found ways to circumvent rules.

Fabela acknowledges that issues exist within the current process, including a lack of modernization with the print newspaper ad requirement. He also noted that some job requirements are so "overly narrow" that they "effectively match one candidate's resume." The most concerning issue is "wage-level manipulation," according to Fabela.

"Bad actors will write dumbed-down job descriptions in a way that understates the role's actual skill level. That allows them to pay experienced candidates significantly less while still clearing the prevailing wage test," Fabela told Blaze News.

Jobs.Now also highlighted issues with the manipulation of the "overly broad" prevailing wage standard, which "allows companies to slot jobs into categories that could include far less advanced roles, which have lower wage standards."

America First reforms

Amid an uncertain tech job market and ongoing criticisms of the PERM process, advocates like Jobs.Now are pushing for reforms to address the root problems and restore priority to American workers.

Jobs.Now is calling for changes to H-1B and PERM regulations, as well as the cancellation of the OPT visa program, to open more job opportunities to American workers, including entry-level recent college graduates.

‘We think the regulations must be changed so that labor market tests give American citizens the right they deserve to be considered first for jobs in America, rather than the formality they are currently treated as.’

Companies should also be required to prove that there are no qualified American candidates available for a position before issuing an H-1B visa, Jobs.Now stated.

The tech workers behind the job board website are advocating for companies to be required to post all labor market tests on their website’s career page, accept digital applications, and post on high-traffic job boards like LinkedIn or Indeed, rather than newspaper classifieds.

RELATED: America last? Foreign workers fill jobs while Americans are left out

Photo by Justin Sullivan/Getty Images

“In short, we think the regulations must be changed so that labor market tests give American citizens the right they deserve to be considered first for jobs in America, rather than the formality they are currently treated as,” Jobs.Now told Blaze News.

Fabela agrees that the H-1B program is flawed and in need of reform to prevent abuse. However, he noted that he is “unapologetically pro-H-1B," expressing concern that China would win the tech race “without firing a shot” if the U.S. closes the door on foreign talent.

The U.S. Equal Employment Opportunity Commission has vowed to clamp down on employment bias by increasing investigations, compliance checks, and litigation.

“The EEOC is putting employers and other covered entities on notice: If you are part of the pipeline contributing to our immigration crisis or abusing our legal immigration system via illegal preferences against American workers, you must stop,” EEOC Acting Chair Andrea Lucas stated in March.

“The EEOC is here to protect all workers from unlawful national origin discrimination, including American workers,” Lucas remarked.

The DOL did not respond to a request for comment.

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