Microsoft responds to racist Xbox layoff conspiracy theory, says CEO Asha Sharma is ‘American born, raised, and educated’

I’ve seen a lot of complaints and concerns about the layoffs at Xbox that put 3,200 people out of work and resulted in the spinoff of four studios—eventually five, once the Arkane situation is sorted. One I haven’t run across is a claim that it’s all part of an effort to take jobs away from Americans and replace them with non-Americans on H-1B visas. That changed today, though, when Microsoft chief communications officer Frank X. Shaw took to social media to deny the claim.

The allegations are apparently rooted in stories like this one from Fox News, with the headline, “Fury erupts as US brand fires 1,600 employees after securing thousands of foreign worker visas.”

Fox noted that Microsoft is laying off roughly 4,800 employees in total, the bulk of them from Xbox, while at the same time acquiring authorization “to hire from foreign countries 2,273 employer-sponsored, non-immigrant workers under what is known as the H-1B visa program.”

Quoting a series of random people on X, the report states that “furious online critics claim that American jobs are being unfairly handed to foreigners,” adding that “some online critics [have] claimed Sharma’s Indian heritage played a role in firing the Americans, given the percentage of H-1B workers from India.”

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