Tech industry layoffs
During the last months of 2022, big tech companies started announcing massive layoffs that would affect thousands of workers. The tendency has bled into 2023, leaving immigrant workers facing a ticking clock to find new jobs or leave the country.
Uncertain economic climate![]()
Forbes cites the unstable economy as one of the reasons that these companies have decided to let go of so many employees. In 2022 Americans saw the highest inflation in history, and companies were bracing to face that mixed with a recession like no other in 2023.
Redirecting company resources
The other reason that Forbes cites for these layoffs is the need to pivot or redirect companies. According to the magazine, Microsoft’s CEO pointed out that the company will continue hiring in crucial areas, channeling its resources to new technologies and dropping other ones.
Meta layoffs![]()
Meta was the first big company to announce a massive layoff in November 2022. Eleven thousand employees were fired, 13% of the total workforce. Zuckerberg took responsibility for this action and announced a hiring freeze.
Microsoft layoffs
On January 18, Microsoft’s CEO, Satya Nadella, announced that the company would fire 5% of its staff by the end of the 2023 Fiscal Year. Part of the 10.000 workers received their notices that same day and the following weeks.
Amazon layoffs![]()
Amazon’s layoffs were announced in two parts, one in November 2022 and another in January 2023. In sum, the company fired 18.000 employees. It was the biggest layoff among the tech giants, representing around 6% of the company’s workforce.
Thousands of immigrant workers
These layoffs affect hundreds of immigrant workers. The tech industry in the U.S. is highly reliant on specialized foreign workers. According to a Bloomberg report, big tech companies have sponsored around 45.000 work visas in the last three years.
H1-B Visa![]()
Generally, these types of workers receive an H1-B visa permitting them to work in the U.S. for three years, with the possibility of an extension. It is one of the critical tools to find highly trained and specialized workers in a very tight labor market.
60 days to get back on track
H1-B visa holders are among the most affected workers by tech layoffs: they only have 60 days to find another job that will replace the one that sponsored their visa. Otherwise, they have to return to their country.
Companie’s alternatives![]()
Some companies, like Meta, have devised alternatives for the H1-B visa workers affected by their layoffs. According to Time magazine, the company offered “dedicated immigration specialists” to help employees on visas and even delayed some of their notices to give them more time to find another job.
Surprising layoffs
Other companies have also sought to hire these workers, who are among the top experts in their field. Joshua Browder, CEO of an AI legal services start-up, told NPR that he was surprised by who big companies were laying off: “They are some of the best designers, engineers with amazing portfolios,” he said.
A “broken” system![]()
The layoffs have also highlighted the cracks in the H1-B visa system. Todd Schulte, president of FWD.us, a bipartisan immigration tech advocacy group, told Time magazine that “this is downstream from a really failed and broken system.”
Outsourcing firms
Schulte cites one of the reasons for the system failure is the need to use outsourcing firms to hire H1-B visa workers. A small firm will most likely be rejected. That is why some outsourcing companies do the hiring and act like “high-tech temp agencies,” he told Times.
Trapped under one employer![]()
Another problem with the H1-B visa is how dependent a worker is on their sponsoring company. A highly prepared worker might be discouraged from searching for another company, as it might result in legal problems. That model leaves workers unprotected, says Schulte.
Yearly lottery
But perhaps the most problematic part of the system is the lottery. Each year, the U.S. will grant 85.000 H1-B visas, and companies that want to sponsor a worker have to rely on luck. If their candidate is not selected, they can not be hired.
75% rejected visas![]()
