H-1B Visa Delays Worsen Impact of US Tech Layoffs on Indian Professionals

 

The US tech industry, once heralded as a beacon of innovation and opportunity, is currently grappling with a confluence of challenges. Over the past few years, the landscape has been increasingly impacted by waves of tech layoffs, affecting thousands of professionals, particularly those from India. With a significant portion of these workers employed on H-1B visas, the ongoing delays in visa processing are exacerbating an already precarious situation. For many Indian tech professionals, the pressure of securing new employment within a limited timeframe adds to the complex maze of US immigration policies.

In this article, we delve into the severe impact of H-1B visa delays, the role of tech layoffs, and how these issues are pushing Indian professionals into an even more unstable future in the US.

The Scale of Tech Layoffs and Their Impact on Indian Professionals

Since 2022, tech layoffs have become a significant trend in the US, impacting a wide swath of the workforce. According to data from Layoffs.fyi, more than 137,500 employees have been laid off from 438 tech companies. The numbers reflect an industry in turmoil, as giants like Meta, Google, and Amazon have been forced to trim their workforce. For many American citizens, these layoffs, while concerning, come with fewer long-term consequences. However, for Indian professionals on H-1B visas, the stakes are much higher.

H-1B Workers Face a Ticking Clock

Indian professionals make up a substantial portion of the H-1B visa holders in the US, a visa program that allows American companies to employ foreign workers in specialized fields such as IT, engineering, and software development. When these workers lose their jobs, they have only 60 days to find new employment before they are forced to leave the country. This short window, compounded by the shrinking number of job opportunities due to mass layoffs, has left many scrambling to secure their future.

The clock starts ticking as soon as the job loss occurs, and in a highly competitive tech industry facing contraction, even seasoned professionals can struggle to secure new roles. The emotional and financial burden is enormous, leading to a wave of stress and uncertainty for thousands of Indian tech workers who have spent years contributing to the US economy.

H-1B Visa Delays: A Compounding Problem

While the pressure of layoffs is substantial, the ongoing H-1B visa processing delays make matters worse. The delays in both the visa renewal and green card processes have been amplified by the pandemic, government backlogs, and policy changes. Currently, it can take months, if not years, for H-1B visa holders to have their visas processed or renewed.

The problem is particularly acute for Indian professionals. According to the US Congressional Research Service, Indian workers can face wait times of up to 190 years to obtain a green card due to per-country caps. This enormous backlog means that many Indian tech professionals live in a state of prolonged uncertainty, unable to transition to more permanent residency and constantly dependent on their employers for visa sponsorship. With layoffs rising, these professionals are often left with little time to find a new sponsor before being forced to return to India.

New Visa Regulations Add Complexity for Tech Workers

Recent changes in US visa regulations have only added to the complexity. In 2024, the US Department of State introduced updates in its visa bulletin, which has altered the timeline for several visa categories, including the H-1B and EB-5 investor visas. While the latter visa category mainly affects high-net-worth individuals, changes to H-1B visa fees are impacting every tech worker reliant on this visa.

Skyrocketing H-1B Visa Fees

The cost of applying for and maintaining an H-1B visa has risen dramatically. In 2024, the US Citizenship and Immigration Services (USCIS) increased the H-1B application fee by 70%, from $460 to $780 for paper filings. More strikingly, the fee for H-1B lottery registrations has skyrocketed from $10 to $215 per applicant—a 2,150% increase. These fee hikes represent an additional financial burden on both workers and employers, many of whom are already dealing with budget constraints amid layoffs.

Tightening Scrutiny on Visa Applications

Beyond the financial strain, the application process itself has become more arduous. International students and temporary workers applying for F, M, and J visas are now subject to additional scrutiny, requiring more detailed documentation and higher standards of proof when applying for visa appointments. For tech professionals on H-1B visas, these changes mean that even securing a visa in the first place, let alone renewing it, is a more challenging endeavor than ever before.

Limited Green Card Availability Prolongs Uncertainty

For Indian professionals on H-1B visas, obtaining a green card is the most reliable path to long-term residency in the US. However, due to per-country limits, Indian nationals face significantly longer waits than applicants from other countries. The US green card system allocates only a limited number of green cards annually, and with Indian nationals occupying a large percentage of the employment-based visa category, the wait times have ballooned to decades.

Many tech professionals find themselves in a state of immigration limbo. Despite fulfilling all the requirements for permanent residency, they are unable to progress through the system because of their country of origin. This has created a bottleneck that keeps Indian workers tied to their H-1B visa status for an indefinite period, making their careers and lives in the US deeply unstable.

Are There Any Silver Linings for H-1B Visa Holders?

While the current scenario is bleak, there are some policy changes that offer a glimmer of hope for H-1B visa holders. In recent years, the USCIS has extended the maximum validity of Employment Authorization Documents (EADs) to five years. This extension offers greater stability for those already in the workforce, giving them more time to find employment should they lose their jobs.

Additionally, international students on Optional Practical Training (OPT) and Curricular Practical Training (CPT) still have access to the 24-month STEM OPT extension, providing more flexibility for new graduates from science, technology, engineering, and mathematics fields. While these measures don’t directly solve the problems faced by H-1B visa holders, they do provide some breathing room for workers trying to navigate the tricky waters of US immigration.

A Troubling Landscape for Indian Tech Professionals

The combination of mass layoffs and H-1B visa delays has created a uniquely difficult situation for Indian tech professionals working in the US. As layoffs continue to affect the tech sector, many professionals on H-1B visas are left facing not just unemployment but also the very real threat of losing their immigration status and being forced to leave the country. With skyrocketing visa fees, tighter application requirements, and prolonged green card wait times, these workers find themselves at the intersection of job insecurity and immigration limbo.

While some positive policy changes offer limited relief, the path forward for Indian tech workers in the US remains fraught with uncertainty.