Microsoft Reportedly Eyes Sales Staff for Next Round of Cuts
US political figures, Donald Trump and JD Vance, are scrutinising American tech giants. Trump criticises outsourcing jobs and manufacturing, while Vance targets reliance on H-1B visas. Angel Bena : Pexels

A significant shift in the American tech landscape is on the horizon as US President Donald Trump and Vice-President JD Vance have openly voiced their resentment when it comes to Big Tech's love affair with foreign workers.

The gloves are off, and Silicon Valley's cosy relationship with H-1B visa holders—particularly from India—is squarely in the crosshairs.

Trump Takes Aim at Tech's Overseas Practices

Addressing the AI Summit on Wednesday, President Trump stated emphatically that his administration would no longer permit such practices. 'Many of our largest tech companies have reaped the blessings of American freedom while building their factories in China, hiring workers in India and slashing profits in Ireland, you know that,' Trump said.

'All the while dismissing and even censoring their fellow citizens right here at home. Under President Trump, those days are over,' he added.

These comments were made as the President signed three executive orders aimed at strengthening the US artificial intelligence (AI) sector. One significant action was the creation of a comprehensive White House plan, 'America's AI Action Plan,' designed to ensure U.S. dominance in global AI development.

The 'America First' Approach

Trump urged US-based technology giants, including Google and Microsoft, to adopt a more patriotic operational strategy that aligns with his definition of national interests. 'We need US technology companies to be all in for America. We want you to put America first. You have to do that. That's all we ask,' news agency PTI quoted Trump as saying.

He also called for 'a new spirit of patriotism and national loyalty in Silicon Valley and long beyond Silicon Valley.'

Highlighting the importance of AI development for both economic and military strength, Trump stated: 'America is the country that started the AI race, and as president of the United States, I'm here today to declare that America is going to win it.'

He added, 'Winning this competition will be a test of our capacities, unlike anything since the dawn of the space age.'

JD Vance's H-1B Warning to Tech Giants

While President Trump focused broadly on outsourcing and overseas hiring, the conversation around American tech companies' practices has also sharpened, with Vice-President JD Vance directly addressing Microsoft's reliance on H-1B visas, per The Times of India.

JD Vance issued a strong warning about H-1B visas, criticising companies like Microsoft for dismissing employees while continuing to hire overseas. He criticised US companies for prioritising H-1B visas over employing Americans, stating he doesn't believe the 'absurd' claim that these companies cannot find suitable workers within the US.

During a bipartisan event co-hosted by the Hill and Valley Forum, Vance questioned the ethical and economic reasoning behind mass layoffs by companies such as Microsoft, especially when followed by an increase in H-1B applications.

He suggested that these companies might be dismissing American staff only to seek them to hire individuals from overseas. 'You see some big tech companies where they'll lay off 9,000 workers, and then they'll apply for a bunch of overseas visas. And I sort of wonder; that doesn't make sense to me,' he said.

'That displacement and that math worries me a bit. And what the President has said, he said very clearly: We want the very best and the brightest to make America their home. We want them to build great companies and so forth. However, I don't want companies to lay off 9,000 American workers and then claim, "We can't find workers here in America." That's a bulls**t story.'

When Politics Meets Silicon Valley Reality

This isn't your typical Republican administration tip-toeing around Big Tech anymore. Trump's making it crystal clear: if you're going to feast at America's table, you better hire Americans to serve the meal.

The H-1B programme has become a proper battleground within Republican ranks. You've got the MAGA crowd—ordinary Americans who've watched their jobs disappear—squaring off against pro-business Republicans who've traditionally backed whatever Silicon Valley wanted. It's getting messy, and fast.

Here's what's really happening behind the scenes: Amazon leads the pack with the most H-1B approvals, followed by Google, Meta, Microsoft, and Apple. Even Tesla—yes, Elon Musk's Tesla—grabbed 1,767 approved visas last year. About 65,000 visas get handed out annually through a lottery system, and guess who's winning most of them? Indians, followed by Chinese and Canadian workers.

That's not coincidence—that's strategy.

Policy Changes Signal Real Intent

The Trump administration isn't just talking tough—they're changing the rules. Since January, the H-1B Modernisation Rule has tightened things up considerably—one lottery entry per year, stricter oversight, and new forms that mean something.

Vance's aggressive stance suggests more restrictions are coming, though nothing's been officially announced. Immigration lawyers are scrambling to prepare their clients for what could be a much rougher ride ahead. During Trump's first go-round, denial rates jumped to 15%—expect similar or worse this time.

An Indian-American Investor's Counterpoint

An Indian-American tech investor, Sidharth, responded to Vance's comments, pointing out that the senator failed to mention that a significant number of the 9,000 laid-off employees were also H-1B visa holders who received no severance, no safety net, and were given only 60 days to depart the country.

The tech investor clarified that Microsoft did not hire new foreign workers after layoffs. Instead, the company renewed visas for long-term employees who have legally resided in the US for years, caught in green card backlogs.

Sidharth argued that characterising this as 'replacing Americans' is inaccurate, comparing it to allowing a loyal employee to renew their visa and remain in their earned position, rather than hiring a new person.

In a follow-up post, he clarified his position, stating he is not a supporter of Microsoft and viewed the dismissal of 9,000 employees in one month as a brutal corporate choice. His sole intention, he explained, was to highlight the unfairness of blaming immigrant employees for Microsoft's AI strategy, which he felt strongly needed to be addressed.

Silicon Valley Under Pressure

Trump's demand for 'a new spirit of patriotism and national loyalty in Silicon Valley' signals heightened scrutiny of tech industry practices. The President framed AI development as crucial for both economic and military strength, declaring: 'America is the country that started the AI race, and as president, I'm here to declare that America is going to win it.'

The administration's stance reflects broader tensions about globalisation, immigration, and national competitiveness in emerging technologies. Trump compared the AI competition to 'the dawn of the space age,' underlining the strategic importance attached to technological leadership.

As the Trump administration pursues its 'America First' technology agenda, the balance between attracting global expertise and protecting American jobs remains contentious.