Saturday, March 29, 2025

U.S. Companies Fired 40,000 Tech Workers

September 21, 2025 1:11 PM
Job Canceled

White House: U.S. Companies Fired 40,000 Tech Workers, Replaced Them with H-1B Visa Holders

The White House has raised serious concerns over the misuse of the H-1B visa program, alleging that major American companies have laid off tens of thousands of domestic technology workers and replaced them with foreign employees on temporary visas.

According to a fact sheet released on Saturday, one company secured 5,189 H-1B approvals in FY 2025 while simultaneously laying off about 16,000 U.S. workers. Another firm was granted 1,698 visas but announced job cuts for 2,400 employees in Oregon this July. A third company reportedly received 25,075 H-1B approvals since 2022 while slashing 27,000 U.S. jobs, and yet another dismissed 1,000 Americans, forcing some to train their foreign replacements under nondisclosure agreements.

The statement warned that such practices are discouraging future American workers from pursuing careers in science, technology, engineering, and mathematics (STEM), and are even posing risks to national security.

President Donald Trump, who recently announced a $100,000 H-1B visa fee, framed the move as a way to curb abuse of the program, protect wages, and safeguard American jobs. The administration clarified that the new fee will apply only as a one-time payment for new petitions, not renewals or existing visa holders.

The U.S. Citizenship and Immigration Services (USCIS) confirmed that petitions filed before the September 21, 2025 effective date will not be impacted. Current visa holders abroad will also not need to pay the fee upon reentry.

A White House official further told PTI that the rule applies exclusively to new visa applications in upcoming lottery cycles, not to renewals or those who won the 2025 lottery.

Meanwhile, the announcement has triggered anxiety among Indian professionals, who make up a significant portion of the H-1B workforce, as well as criticism from labor advocates who accuse corporations of undermining American talent in favor of cheaper overseas labor.

Have something to say? Post your comment