Business News

US Senators Question Tech Giants Over H-1B Hiring Amid Layoffs

US Senators Chuck Grassley and Dick Durbin have questioned ten major technology employers, including Tata Consultancy Services (TCS), Cognizant, Amazon, Google, Meta, and Microsoft, over their use of H-1B visa petitions while simultaneously carrying out large-scale layoffs of American workers.

The senators, both long-standing critics of the H-1B program, sent letters to these companies on September 25, 2025. They argued that despite high unemployment among American technology workers, these firms continued to seek thousands of foreign workers through the visa program.

“In evaluating the high unemployment rate for American tech workers, we cannot ignore the massive, ongoing layoffs ordered by you and your peers in Big Tech C-suites over the past few years,” the letter stated. “At the same time you have been laying off your employees, you have been filing H-1B visa petitions for (thousands of) foreign workers.”

Push for Visa Reform Legislation

The senators also announced their plan to reintroduce bipartisan legislation known as the H-1B and L-1 Visa Reform Act. This proposed law aims to target fraud and abuse in the US immigration system, while providing stronger protections for both American workers and visa holders. It also seeks to enhance transparency in the foreign worker recruitment process.

Durbin and Grassley argued that loopholes in the current system allow companies to displace American talent with cheaper foreign labour. “With all of the homegrown American talent relegated to the sidelines, we find it hard to believe that (you) cannot find qualified American tech workers to fill these positions,” the senators wrote.

Also Read: RBI Governor Malhotra Sees Strong Growth Outlook but Warns of Global Market Risks

Spotlight on Tata Consultancy Services (TCS)

TCS was among the companies directly called out in the senators’ communication. The letter highlighted that the company recently announced plans to lay off over 12,000 employees, including American staff.

According to the data cited by the senators, in fiscal year 2025 TCS applied for and received approval to hire 5,505 foreign H-1B employees.

The statement also noted that TCS is currently under investigation by the Equal Employment Opportunity Commission (EEOC) for allegedly dismissing older American employees in favour of younger foreign H-1B visa holders.

Cognizant’s Layoffs and H-1B Usage

Cognizant Technology Solutions was also mentioned for both its layoff numbers and visa applications. The senators’ statement said Cognizant laid off thousands of employees, including US-based staff.

For fiscal year 2025, Cognizant applied for and received approval to hire 2,493 foreign H-1B workers. The senators further referenced a 2024 federal jury ruling, which concluded that Cognizant had discriminated in favour of South Asian H-1B visa holders over American employees, resulting in punitive damages.

Amazon’s Workforce Cuts and Visa Approvals

Amazon was highlighted for laying off tens of thousands of employees in recent years, a move it attributed in part to the adoption of generative AI tools.

Despite the layoffs, the senators pointed out that in fiscal year 2025, Amazon applied for and received approval to hire 10,044 foreign H-1B employees, the highest number among the firms mentioned.

Google’s Job Cuts and Hiring Practices

Google also faced scrutiny in the senators’ letter. The company reportedly laid off tens of thousands of employees, including hundreds in its platform and device unit, and cut 35 percent of its small team managers. These actions came “despite enjoying record profits,” the statement noted.

In fiscal year 2025, Google applied for and received approval to hire 4,181 foreign H-1B employees, according to the senators’ statement.

Meta’s “Year of Efficiency” and Continued Visa Filings

The senators cited Meta’s significant workforce reductions between 2022 and 2023, during which the company cut a quarter of its staff and termed it a “year of efficiency.”

In 2025, Meta further laid off 3,600 employees, surpassing its own goal of cutting an additional five percent of its workforce. Yet, in fiscal year 2025, Meta also applied for and received approval to hire 5,123 foreign H-1B employees.

Microsoft’s Layoffs Despite Profitability

Microsoft was also called out for mass layoffs. According to the senators, Microsoft laid off 16,000 employees in 2025 alone, even as it reported record revenue and profits.

At the same time, Microsoft applied for and received approval to hire 5,189 foreign H-1B employees in fiscal year 2025. The senators’ letter noted that Microsoft characterised its approach as an “enigma of success,” despite criticism of the scale of its layoffs.

Broader Criticism of H-1B Usage Amid Layoffs

The senators’ statement collectively highlighted a contradiction between the mass layoffs ordered by major technology companies and their simultaneous expansion of H-1B visa applications. They argued that while many American workers have been displaced, companies continue to bring in thousands of foreign employees under the program.

Emails seeking comment from TCS and Cognizant did not receive a response, according to PTI.

Bipartisan Push for Change

Grassley and Durbin have consistently argued that the H-1B program is being misused to displace US workers with cheaper foreign labour. Their reintroduction of the H-1B and L-1 Visa Reform Act underscores a renewed push to close perceived loopholes, ensure fairer hiring practices, and improve transparency in the system.

Conclusion

The letters sent by Senators Grassley and Durbin to TCS, Cognizant, Amazon, Google, Meta, Microsoft, and other major employers mark another chapter in the ongoing debate over the H-1B visa program. With mass layoffs in the US technology sector coinciding with tens of thousands of visa applications, the scrutiny on hiring practices is intensifying. The reintroduced reform bill signals potential changes ahead in US visa policy, aimed at protecting American workers while tightening oversight on corporate use of foreign labour.

Click here to explore:

FII DII Data
IPO
BSE Sensex

Ruchika Dave

Ruchika Dave is an experienced Intraday Trader and Stock Market Analyst with a strong focus on IPOs, business news, and the Indian economy. As a Marketing Head by profession, she combines strategic expertise with deep market knowledge to deliver accurate and insightful financial analysis trusted by readers and investors alike.

Published by
Ruchika Dave

Recent Posts

Aviation Minister Halts FDTL Orders, Says IndiGo Flight Schedules Will Stabilise by Tomorrow

IndiGo Crisis Intensifies as Govt Steps In; DGCA Suspends FDTL Rules, Full Restoration Expected in…

2 hours ago

RBI Rate Cut Sparks Market Rally as Sensex Gains 450 Points and Nifty Nears 26,200

Markets Cheer RBI’s Growth-Driven Rate Cut as Sensex Rises 447 Points and Nifty Ends Near…

2 hours ago

Market Experts Reveal 10 Stocks Likely to Gain From RBI’s Rate Cut and Higher GDP Estimate

RBI Cuts Repo Rate and Lifts Growth Forecast, Boosting Sentiment in Rate-Sensitive Stocks In a…

3 hours ago

CAMS Stock Appears to Plunge After 1:5 Split — But the Drop Is Only a Technical Adjustment

CAMS Shares Appear to Plunge 80% as 1:5 Stock Split Kicks In, but Investors Are…

3 hours ago

Trading Platforms Face Downtime as Cloudflare Outage Spreads to Zerodha, Groww and Others

Major Cloudflare Outage Ripples Across India’s Trading Platforms, Disrupting Market Activity A sudden Cloudflare outage…

4 hours ago

IndiGo Shares Rebound After DGCA Grants Partial Relief on Pilot Duty Norms

IndiGo Shares Bounce Back as DGCA Offers Partial Relief on Pilot Duty Rules Amid Nationwide…

5 hours ago

This website uses cookies.