Microsoft denied recent accusations that Xbox intended to replace thousands of employees affected by the recent layoff wave with workers or contractors from outside the United States. Communications head Frank X. Shaw confirmed that the restructuring aims to fix what the company described as unhealthy business practices within Xbox, not to offshore jobs. He also clarified that the figures related to H-1B visas pertain entirely to Microsoft, including renewals and new job applications, and are not directly related to the jobs that were eliminated.
Shaw added that most of the jobs affected by the layoffs were outside the United States, noting that Microsoft remains the largest U.S. employer in the gaming sector. He also defended Xbox CEO Asha Sharma, who faced racist attacks on social media, affirming that she was born and raised in America. Microsoft continues to implement a restructuring plan that will lead to the elimination of about 3,200 jobs in the gaming sector by the end of fiscal year 2027, emphasizing that the goal is to focus on major brands and improve the efficiency of Xbox's business.