H-1B holders hit hard as US tech layoffs surge, Indian engineers face uncertain future

Even those who retain their jobs are likely to feel the pinch.

Indian tech workers in the US, especially those on H-1B visas, are facing rising uncertainty as layoffs across the tech industry pick up pace amid deepening economic concerns and an increasingly fragile immigration environment.

According to The Economic Times, social media platforms such as Reddit and X have seen a surge in posts from Indian tech professionals raising alarm about sudden job losses, project cancellations, and growing anxiety over visa status. Terms like “Liberation Days layoffs” are gaining traction as US-based startups and hardware firms announce fresh rounds of layoffs.

A testing engineer told The Economic Times that she was laid off on April 11 and was informed that “market conditions and the instability in the semiconductor industry” were to blame. Another employee at a startup said his entire team was let go after their project was outsourced.

Experts cited by The Economic Times warned that the worst may be yet to come, with companies across sectors like airlines, hospitality, consumer goods, and tech expected to trim up to 20% of their workforce. “While the cuts have so far been piecemeal, should the economic situation worsen, I would anticipate layoffs between 5-10% of workforces,” said Phil Fersht, CEO of US-based advisory HfS Research.

Global layoffs tracker Trueup, as reported by The Economic Times, estimates that over 2,700 tech workers have been laid off so far in April alone, with Microsoft and Google among the affected companies.

For Indian professionals, the impact is particularly sharp. According to United States Citizenship and Immigration Services data, Indian nationals received 72.3% of all H-1B visas issued between October 2022 and September 2023. New data is expected later this year.

“With over 60,000 tech jobs lost globally in 2024 and visa rules tightening, Indian H-1B holders in the US are facing layoffs, career limbo, or forced returns,” said Neeti Sharma, CEO of staffing firm TeamLease Digital, to The Economic Times. She added that foreign workers on temporary visas are “the first ones to get impacted due to legal constraints and limited flexibility”.

Legal experts are also flagging rising headwinds. “Given the macroeconomic situation and media reports of student visa revocations and non-citizens being required to carry identification documents, Indian citizens seeking employment in the US will have a tougher road ahead,” Sowmya Kumar, partner at Cyril Amarchand Mangaldas, told The Economic Times.

Amid growing uncertainty, many Indian workers now face a difficult choice—stay and risk deportation, or return to India and restart their careers. Kumar advised professionals to focus on upskilling and long-term career planning, noting the rise of remote work as a potential opportunity.

Sharma from TeamLease pointed to a shifting trend where companies are increasingly moving roles offshore or going remote. “India is emerging as a hub for new jobs in cybersecurity, cloud, GenAI, and ERP support—offering a silver lining amid the disruption,” she said.

Despite mounting pressure, experts do not expect sweeping changes in US visa policy in the near term. “I do not see any significant tightening of the legal immigration situation with IT firms, especially as this is an area the Trump administration, especially Elon Musk, is vocally supporting,” Fersht told The Economic Times. However, he did warn of a general slowdown in H-1B and L1 visa issuances due to economic headwinds.

Even those who retain their jobs are likely to feel the pinch. Companies are deploying cost-cutting strategies, including delaying salary hikes and hiring freezes.