Microsoft Corporation, a global leader in technology, announced on July 2, 2025, that it is laying off approximately 9,000 employees, representing nearly 4% of its global workforce of 228,000 as of June 2024. This marks the company’s largest round of job cuts since 2023 and its second significant layoff this year, following a reduction of 6,000 jobs in May. The layoffs, aimed at streamlining operations and reducing management layers, are part of Microsoft’s strategic restructuring to prioritize investments in artificial intelligence (AI) and enhance organizational agility in a dynamic marketplace.
For Indian visa workers and Non-Resident Indians (NRIs) employed at Microsoft, particularly those on H-1B visas, this announcement raises significant concerns about job security, visa status, and career prospects in the U.S. tech industry.
Affected Organizations and Teams
Microsoft has confirmed that the layoffs will impact employees across various teams, geographies, and levels of experience, with a particular focus on reducing managerial layers to create flatter, more agile teams. Specific details about the affected organizations include:
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Sales Division: Reports indicate that the sales teams, comprising approximately 45,000 employees as of June 2024, are among the hardest hit. The layoffs aim to streamline customer-facing roles, aligning with Microsoft’s goal to enhance productivity through new technologies.
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Xbox and Gaming Division: The gaming unit, including Xbox, ZeniMax, and King (developer of Candy Crush), is also affected. King’s Barcelona office is set to lose 10% of its workforce (approximately 200 jobs), with additional cuts expected across European and U.S. teams. Microsoft Gaming CEO Phil Spencer emphasized that the cuts are intended to “position Gaming for enduring success” by focusing on strategic growth areas and reducing management layers. Affected employees will receive severance packages, healthcare coverage, and job placement assistance, with priority consideration for other roles within Microsoft Gaming.
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Other Teams: While specific details on other divisions, such as engineering or product development, are less clear, the layoffs are described as spanning multiple teams and tenures. Previous layoffs in May 2025 targeted product and engineering roles, suggesting that some technical teams may also be affected in this round, though to a lesser extent than sales and gaming.
Affected Offices
The layoffs are global, impacting Microsoft’s operations across various regions. Key locations mentioned include:
- Redmond, Washington: Microsoft’s headquarters in Redmond is significantly affected, with approximately 2,290 local employees included in the 9,000 job cuts. This follows earlier reductions in May 2025, when 1,985 workers in Washington state were laid off.
- European Offices: The gaming division’s European teams, particularly at King’s Barcelona office, are facing cuts. Other European locations supporting ZeniMax and Xbox operations are also expected to be impacted.
- Global Reach: With Microsoft’s workforce distributed across 120,000 employees in the U.S. and the remainder worldwide, the layoffs are expected to affect offices in multiple countries, though specific international locations beyond Barcelona have not been detailed in available reports.
Impact on Indian Visa Workers and NRIs
Indian professionals, particularly those on H-1B visas, form a significant portion of Microsoft’s U.S. workforce, especially in technical and engineering roles. While exact numbers of affected Indian employees are not disclosed, the scale of the layoffs and their focus on sales and gaming suggest several implications for NRIs and visa workers:
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H-1B Visa Concerns: Posts on X have raised concerns about Microsoft’s simultaneous filing for 6,327 H-1B visas for software engineers at Redmond, even as it cuts jobs. This has sparked speculation about job replacement rather than outright elimination, potentially affecting Indian workers’ visa renewals or transfers. For H-1B holders, layoffs pose a risk of falling out of visa status, with a 60-day grace period to secure new employment or face potential departure from the U.S.
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Job Market Challenges: The tech industry’s broader trend of layoffs, with 63,823 tech employees cut across 150 companies in 2025, intensifies competition for Indian professionals seeking new roles. NRIs with specialized skills in AI, cloud computing, or gaming may find opportunities within Microsoft or competitors like Meta, which is reportedly hiring AI researchers aggressively. However, the focus on reducing managerial roles may disproportionately affect senior Indian professionals in leadership positions.
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Economic and Emotional Toll: For NRIs, layoffs can disrupt long-term plans, including permanent residency applications or family stability in the U.S. The uncertainty is compounded by Microsoft’s emphasis on AI-driven tools like GitHub Copilot, which may reduce demand for certain coding roles traditionally filled by Indian engineers.
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Support Measures: Microsoft’s commitment to providing severance packages, healthcare coverage, and job placement assistance offers some relief. However, Indian visa workers may face unique challenges navigating U.S. job markets due to visa restrictions and the need for employer sponsorship.
Broader Context and Industry Trends
Microsoft’s layoffs are part of a larger wave of tech industry restructuring, driven by economic pressures and the rapid adoption of AI. The company’s investments in AI infrastructure, including tools like GitHub Copilot (with over 15 million users), reflect a shift toward automation and efficiency, potentially reducing the need for certain roles. Other tech giants, such as Google, Amazon, and Meta, have also implemented layoffs or buyout offers in 2025, signaling a tightening job market.
For Indian professionals, this trend underscores the need for upskilling in AI, machine learning, and cloud technologies to remain competitive. Microsoft’s encouragement to “lean on new technologies” suggests opportunities for employees who adapt to these tools, but it also highlights the risk of displacement for those in roles vulnerable to automation.
Looking Ahead
As Microsoft navigates its fiscal year 2026, the layoffs signal a strategic pivot toward AI-driven innovation and operational efficiency. For Indian visa workers and NRIs, the immediate challenge is securing alternative employment within or outside Microsoft, while managing visa-related uncertainties. Community support, professional networks, and upskilling programs will be critical for Indian tech professionals to thrive in this evolving landscape.
As Microsoft continues to reshape its workforce, Indian employees and NRIs must leverage their expertise and resilience to navigate these changes.
For further details on Microsoft’s layoffs or support for affected employees, visit Microsoft’s official communications or contact their HR department. For Indian professionals seeking visa-related guidance, consulting immigration experts or organizations like the Indian American Community Services can provide valuable support.