Many reactions to Xbox’s recent cuts — which affected about 3,200 people and led to the spinoff of four studios (with a fifth linked to Arkane still unsettled) — have been sharply critical. One theory that circulated online claimed the layoffs were intended to replace American workers with H‑1B visa hires. Microsoft communications chief Frank X. Shaw denied that claim on social media, stressing that CEO Asha Sharma is "American born, raised, and educated." The allegation was amplified after a Fox News piece noted Microsoft is cutting roughly 4,800 roles overall while also receiving authorization to hire 2,273 employer‑sponsored non‑immigrant workers under the H‑1B program. Critics quoted on social platforms argued that American jobs were being handed to foreigners; Microsoft rejects that framing.