The world's biggest software company has been asked by an influential Republican Senator from Iowa Chuck Grassley to first fire foreign workers hired on H-1B visas, a majority of whom are Indians, while implementing the layoff plan and "protect" the jobs of Americans.

An indication that foreigners who also include Indians could be targeted during the layoffs came when a Microsoft spokesperson in a statement said, "We care about all our employees, so we are providing services and support to try to help every affected worker, whether they are US workers or foreign nationals working in this country on a visa."

The company has been in the forefront for expanding the H-1B visa programme, a temporary visa programme that lets American companies and universities hire thousands of foreign workers in a category considered by the government requiring specialised skills.

Dashing off a letter to the company after it recently announced its intention to slash the workforce by 5,000 in the next 18 months, Grassley voiced concern that this would result in American workers losing jobs and not the foreigners hired on H-1B or L visas.

"During a layoff, companies should not be retaining H-1B or other work visa programme employees over qualified American workers," Grassley said in the letter to Microsoft Chief Executive Steve Ballmer.

Microsoft is one of the major beneficiaries of H-1B work visa programme, which is mainly for overseas professionals.