Microsoft’s Layoffs Raise Concerns for Visa Holders: What Are Your Options If You're Affected?

Recently, Microsoft announced it would lay off around 9,000 employees, roughly 4 percent of its global workforce. This marks the second major round of layoffs this year. Just in May, the company let go of about 7,000 workers. These decisions are especially surprising considering Microsoft’s strong financial performance. In its most recent quarterly report ending March 31, the company posted an 18% profit increase, reaching $25.8 billion, thanks largely to its booming cloud and AI business.

Microsoft has been investing billions into data centers and AI infrastructure. Products like GitHub Copilot have over 15 million users. As AI reshapes tech jobs, some teams grow while others shrink. The company’s fiscal year starts every July, and this new round of layoffs was announced on day one of the new cycle. Reports also suggest that Meta is offering record-breaking salaries to lure AI engineers, with some packages reaching $100 million.

While the AI arms race continues, thousands of regular tech workers, including many international employees, are facing sudden layoffs and uncertain futures.

What Are Your Options If You’re on a Visa and Get Laid Off

Compared to US citizens or permanent residents, foreign workers on H-1B, L-1, or OPT visas have stricter timelines and fewer options. Below are the most common pathways to stay legally in the country after a layoff.

If you are on an H-1B visa

You have a 60-day grace period. During this time, you can:

• Find a new employer and file an H-1B transfer before the 60 days are up
• Submit Form I-539 to change status to B-2, F-1, H-4, or other non-immigrant categories
• Apply for an EAD (Employment Authorization Document) under compelling circumstances, though this option is strict and rarely approved
• Enroll in an F-1 Day 1 CPT program. This option allows you to return to student status and begin work on the first day of class through Curricular Practical Training. It is a legal and flexible way to stay in the US and continue gaining experience without a gap in employment

If you are on an L-1 visa

L-1 holders also get a 60-day grace period, but you cannot transfer your visa to a new employer. Common strategies include:

• Filing for H-1B or O-1, if eligible
• Changing to B-2 or F-1 status through a Form I-539 application
• Starting an F-1 Day 1 CPT program, especially if you want to remain in the US and keep working while you plan your next step

If you are on OPT or STEM OPT

You are allowed 90 days of unemployment under OPT, or 150 days if you are on STEM OPT. During this time, you can search for new employment. If you are close to reaching this limit, starting an F-1 Day 1 CPT program can help you stay compliant with immigration rules and continue working legally

Additional Notes for Visa Holders After Layoff

• If you were laid off during the PERM stage of a green card application, you will need to restart the process with a new employer
• Once your 60-day grace period begins, you lose work authorization unless a valid status change or transfer is filed
• If your original employer rehires you within the grace period and your job duties and pay have not significantly changed, you may return to work without reapplying
• If the layoff happens while you are abroad and you cannot reenter the US before the termination date, the 60-day grace period does not apply. You will likely need a new visa to come back
• Your spouse’s legal status, such as H-4, might remain valid until the end of your grace period, giving your family some additional time to plan

Why F-1 Day 1 CPT Is Gaining Popularity

For many international workers who suddenly lose their jobs, Day 1 CPT programs provide an efficient way to stay in the US and remain employed. These programs, often hybrid in format, allow students to start working immediately through CPT authorization while pursuing an advanced degree. They are ideal for professionals who want to avoid returning home or facing status gaps.

GoElite offers personalized support for those considering the Day 1 CPT route. We help students find accredited programs that match their background and goals, and we make sure everything is in line with USCIS regulations. Whether you are already laid off or just want a backup plan, we are here to help you navigate your options and move forward confidently.

If you need help understanding which Day 1 CPT program suits you or want to know how to file the necessary paperwork on time, reach out for a free consultation.

If you are being affected, feel free to share your story in our forum. Let’s bring more transparency to how the system really works.