Layoff event: 2026 rounds · Page reviewed July 2026

Laid off from Microsoft on H-1B? Here’s your next 60 days.

Media reports put Microsoft’s July 2026 round at roughly 4,800 roles (~2.1% of its workforce), with Xbox hit hardest — about 3,200 roles reported through FY2027, roughly 1,600 of them in early July — following earlier 2026 reductions. Microsoft has historically been one of the largest H-1B sponsors, so every round puts visa holders on the 60-day clock. Exact numbers and teams vary by report; what doesn’t vary is the immigration math below.

Your clock starts the day you stop being paid, not the day of the announcement.

Notification date, last working day, and last paid day are often three different dates. The 60-day grace period under 8 CFR 214.1(l)(2) runs from the end of employment. Confirm your exact last-paid date in your separation agreement, then run the 60-day grace calculator with that date — not the announcement date.

Days 0-7: lock in the basics

Get your separation agreement in writing.Confirm the exact last-paid date, severance amount, equity/RSU treatment, COBRA terms, and any immigration-support commitments (petition withdrawal timing, transfer letter, continued access to the company’s immigration vendor). Ask for these in writing before you sign anything.
Print your I-94 history from i94.cbp.dhs.gov and your I-797 history from my.uscis.gov. You’ll need both for any future filing.
Confirm I-140 status. If your I-140 has been approved more than 180 days, your priority date stays with you under AC21 §106 even if the employer later withdraws the petition. Document it now.
If your spouse works on an H-4 EAD: their work authorization is tied to your status chain, and under the Oct-30-2025 rule, EAD renewals filed on/after that date get no automatic extension. Run the EAD gap calculator with their card’s dates — a work-authorization gap for the household is often the bigger financial risk.

Days 7-30: parallel paths

Pursue multiple paths simultaneously — don’t bet everything on one option:

H-1B transfer (highest priority).A new employer’s I-129 being received by USCIS (not approved) inside your grace window starts AC21 portability — you can begin work on receipt. Seattle-area tech hiring is tight in 2026; widen the search with cap-exempt employers (universities, research nonprofits, teaching hospitals) — they file any day of the year with no lottery.
B-2 visitor backstop. File I-539 to change to B-2 while the transfer search continues. Score your timing with the B-2 conversion risk calculator — and file early in the grace window, not on day 58. Be aware USCIS adjudication posture on post-layoff B-2 filings has reportedly tightened in 2025-26; an attorney can calibrate this for your file.
EB-2 NIW pivot. Senior engineers, researchers, and AI/cloud specialists frequently meet National Interest Waiver criteria — a self-petition that needs no employer. Run the EB-1A / NIW scorer and the evidence builder.
If your priority date is current, evaluate I-485 now. Filing during the grace window unlocks H-4 EAD and portability — but USCIS’s PM-602-0199 discretion memo means a laid-off filer should front-load positive equities. Use the AOS Equities Builder first.

Severance: the H-1B-specific levers

Whatever the package terms are, the same three visa-aware levers apply before you sign:

Push for a later last-paid date (or converting part of severance to paid garden leave) — every extra paid week delays the start of your 60-day clock. Severance paid as a lump sum after separation does NOT extend status.
Get the immigration-support commitments in writing — petition-withdrawal timing, a layoff (not for-cause) transfer letter, and vendor access through your grace window.
RSU and 401(k) decisions interact with your visa timeline. Run the numbers in the free severance optimizer before signing — the non-resident-alien tax math on a panicked 401(k) cash-out is brutal.

What if nothing works by day 50?

Run the departure cost calculator and the country hedge calculator to compare an orderly departure against marginal stay options.
An approved I-140 keeps your priority date for life — departing and returning later on a new petition does not erase it.
Note for re-entry planning: new H-1B petitions requiring consular processing may currently involve the $100,000 fee (litigation status here) — in-US transfers and extensions are not affected.

Microsoft cuts are rolling, not one-time

Reports indicate Xbox reductions continue through FY2027. Get one email when there's a new round or a rule change that affects laid-off H-1B workers — nothing else.

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This page summarizes publicly reported information about Microsoft’s 2026 layoffs (figures per media reports as of July 2026; exact numbers and teams vary by report) and general H-1B post-termination options. It is not legal advice and is not affiliated with Microsoft. Consult an immigration attorney for your specific situation.