In a striking shift, Tata Consultancy Services (TCS), one of the largest foreign sponsors of H-1B visas in the United States, has announced it will cease hiring new employees on H-1B visas. This decision marks a significant pivot in the company’s approach to U.S. recruitment, as it responds to the increasingly tough immigration policies under the Trump administration.
The move reflects a broader trend in the tech industry as companies reassess their reliance on foreign talent in light of rising costs and political pressure surrounding the H-1B program. With changes to the visa process, including hefty new fees, companies are now weighing the long-term benefits of shifting to local hires.
TCS to Scale Back H-1B Hiring Amid Visa Crackdown
TCS has been a leading sponsor of H-1B visas, with over 5,500 approved for the 2025 financial year, according to U.S. Citizenship and Immigration Services. The Indian tech giant’s U.S. operations, which employ around 32,000 people, currently have approximately 11,000 workers on H-1B visas. Despite its previous reliance on these visas, CEO K. Krithivasan has made it clear that the company plans to reduce its dependency on foreign-based talent.
Krithivasan explained to the Times of India that TCS intends to focus more on hiring locally in the U.S., citing a strategic decision to reduce the number of employees on visas. He added that, “We have enough people on H-1 already in the US. I don’t think we would be looking for adding to that count,” This pivot aligns with the company’s ongoing strategy to decrease its reliance on visa-based workers, shifting towards a workforce model that prioritises local talent.
This change is also a direct response to the Trump administration’s policies, particularly the controversial $100,000 fee introduced for each H-1B visa. Critics argue that the program has been used to replace U.S. workers with lower-paid foreign labour, though proponents contend it is essential for attracting skilled talent to the U.S. tech industry.
Rising Costs and Legal Challenges Fuel the Shift
The imposition of the $100,000 annual fee on H-1B visas has prompted legal challenges, with a coalition of unions and employers filing lawsuits to block the fee. Nonetheless, the policy is already having significant effects on companies like TCS, which are recalibrating their hiring strategies in response to the increasing financial burden.
Commerce Secretary Howard Lutnick expressed support for the tougher stance on immigration, arguing that the program should prioritise highly skilled individuals who provide substantial value to both their companies and the U.S. economy. He said, “Either the person is very valuable to the company and America, or they are going to depart and the company is going to hire an American.”
