The question isn't "biz" or "technical", it's "biz" or "biz plus MBA". That last bit brings no value to a person straight out of university and there's a good chance that by the time they have a chance to use that knowledge it's already lost.
The article is not saying orgs have reduced hiring MBAs is it? That would be a sign of not having value. It's saying people are not applying because they have better opportunities and don't want to deal with immigration headaches.