The H1-B sponsorship landscape saw major shifts in 2024, with firms like Amazon and Infosys cutting back approvals. Learn how AI, recession fears, and political changes shaped this trend.
Tech firms scale back H1-B sponsorships in 2024, with Amazon, Infosys, and others citing AI and global recession fears.
Mumbai: The H1-B sponsorship ecosystem faced a sharp contraction in 2024, with America’s top tech firms drastically cutting back on visa approvals for immigrant workers. This marks a significant trend shift, driven by geopolitical, economic, and technological factors that reshaped hiring policies across industries.
Amazon led the pack with the most substantial reduction, approving H1-B visas for only 7,000 workers in 2024, compared to 11,000 the previous year. Indian IT firms like Tata Consultancy Services (TCS) and Infosys also reduced their approvals, reflecting a global shift in workforce strategy. Meanwhile, other major players such as Google, Microsoft, Cognizant, and Deloitte followed suit, contributing to the decline in immigrant workforce opportunities.
Indian Workers Most Affected
Indian professionals remain the largest beneficiaries of H1-B sponsorships. In 2022, they accounted for 72.6% of the total 4.14 lakh H1-B applications approved by the United States Citizenship and Immigration Services (USCIS). However, the recent cutbacks have raised concerns among Indian professionals, who are disproportionately affected compared to their Chinese counterparts, the second-largest demographic group.
In contrast, Meta bucked the trend by increasing its H1-B sponsorships by 400 approvals last year. This move is attributed to the company’s strategic expansion in virtual and augmented reality sectors.
Why Are Firms Reducing H1-B Sponsorships?
Experts cite multiple reasons for this shift. Ajay Sharma, an immigration expert, highlighted the impact of global recession fears and the rise of Artificial Intelligence (AI). With AI automating many functions, companies are increasingly able to operate with smaller workforces. Moreover, economic uncertainty has prompted firms to streamline resources, cutting back on visa approvals to manage risks.
Political factors have also played a significant role. Donald Trump’s return to the White House and his administration’s stricter stance on H1-B visa regulations have added uncertainty for companies and workers alike. Geopolitical tensions between countries further compound the challenge.
The Implications of H1-B Reductions
The shrinking of H1-B sponsorships signals a challenging future for thousands of skilled immigrants, especially Indians, aspiring to work in the US. As companies re-evaluate workforce strategies amidst technological and political pressures, professionals will need to adapt to changing demands in the global job market.
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