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US tech layoffs hit Indian workers hard amid new visa rules

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US tech layoffs hit Indian workers hard amid new visa rules

A recent wave of layoffs in the US Tech industry has shocked the sector to the core with its disproportionate impact on workers of Indian origin, especially those on H-1B visas. This situation along with the new visa rules introduced has created a challenging new landscape for the immigrant international students and skilled workers in America.

Recent layoffs in the U.S. tech industry, particularly affecting Indian H-1B visa holders, combined with significant visa fee increases and stricter application processes, have created a challenging environment. ((Pixabay – representational image))

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US tech layoffs

In a sector once considered to be recession-proof, approximately 438 tech companies have laid off 137,500 employees, as reported by Layoffs.fyi. This has created a scarcity of job options in the tech market. Moreover, the H-1B visa provides a limited timeframe for Indian workers to look and secure for a new job or face having to leave the country. Reports by the U.S. Congressional Research Service suggest that Indian workers have to wait for long periods for green cards, sometimes over 190 years even after meeting every labour requirement. This accumulation of requests has made the unstable situation even worse.

The U.S. Department of State’s October 2024 visa bulletin outlined the availability of immigrant visa numbers for the 2025 fiscal year. This bulletin is part of the regular updates provided to inform applicants about which visa categories are open and the status of their applications. This had an impact on various categories of visas including the EB-5 investor visa program, as reported by Telugu360.

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New visa changes and its impact on Indian workers

The EB-5 visa allows people to get visas by investing in certain projects, like those in rural areas or places with high unemployment. While these visas are available globally, applicants from mainland China and India often face delays. However, there are some signs that processing times are getting better. Along with this, an increase has been implemented in the H-1B visas. The fee increased from $10 to $215 per beneficiary, an astonishing 2150% increase. There has also been an increase in the application fee with paper filing rising from $460 to $780 resulting in a 70% increase.

The new visa changes have also impacted the green card applicants as well. The general filing for an I-30 petition is now priced at $675 for paper filing and $625 for online filing. A new Asylum Fee program was introduced for certain petitions which cost $600. The sift has also been seen for international students as additional scrutiny has been implemented for F, M and J visa applicants. They are now required to provide accurate information about their passports while applying for appointments.

On a brighter note, the maximum validity has been pushed forward to five years on Employment Authorization Documents for eligible individuals. This will provide relief on the terms of work permit extensions. Students can still take advantage of practical training opportunities like Optional Practical Training (OPT) and Curricular Practical Training (CPT). The 24-month STEM OPT extension is still available, and some employer requirements have been loosened. These changes are meant to simplify processes, improve security, and manage costs. However, they may also increase financial pressure on applicants and change the makeup of the U.S. tech workforce.

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