Rajesh is exploring options to sell their furniture and car, while his wife is looking into affordable storage solutions. After being laid off by Amazon earlier this year, Rajesh faces a difficult decision: should they sell everything or invest in storage with hopes of returning? This emotional and logistical dilemma is becoming increasingly familiar, as many H1B workers confront sudden job loss and the uncertainty of whether they can remain in the country they’ve come to call home.
Today, we’ll dive into the state of H1B layoffs in 2024 and predictions for what may come in the next year and beyond. We’ll also explore backup options for when H1B layoffs occur and share practical tips on navigating the grace period. Our goal is to help international professionals ease the anxiety that comes with the fragile legal status of the H1B visa.
Table of Content
- H1B Layoffs Landscape in 2024
- Impacts on H1B workers
- Actionable Steps for H1B Workers Facing Layoffs
- Concurrent H1B Visa as a Safety Net
1. Overview of H-1B Layoffs in 2024
The U.S. tech industry has experienced unprecedented turbulence in 2024, with more than 124,000 layoffs affecting professionals across various sectors. Key players like Intel, Microsoft, Tesla, UKG, Intuit, and Dyson implemented large-scale layoffs, which included thousands of H-1B visa holders from countries such as India and China. These job cuts have created heightened job insecurity for international professionals who rely on their H-1B visa status to stay and work in the United States.
Key Companies and Layoff Numbers
- Tesla: Nearly 16,000 employees were laid off in May 2024, impacting H-1B visa holders.
- Intel: Reduced workforce by 15,000 positions.
- Microsoft: Cut approximately 1,000 jobs across teams and locations.
- UKG: Announced layoffs for 2,200 employees.
- Intuit: Reduced staff by 1,800.
- Dyson: Let go of 1,000 workers.
The 2024 layoffs are largely attributed to economic challenges, strategic restructuring, and the increasing role of automation and artificial intelligence (AI) in streamlining operations. Many tech companies, which expanded their workforces during the pandemic to meet surging demand, are now downsizing to adjust to a more cautious economic outlook.
2. Impact on H-1B Visa Holders
For H-1B visa holders, layoffs bring additional challenges beyond job loss. The U.S. immigration system grants a 60-day grace period, during which affected H-1B workers must find new employment with visa sponsorship or change their immigration status to avoid deportation.
Understanding the 60-Day Grace Period
The 60-day grace period allows H-1B visa holders to stay in the U.S. temporarily after a job loss, providing a window to secure new employment, transfer their H-1B status, or apply for an alternative visa type.
- If a new H-1B employer is found within this period, the new employer can file a "change of employer" petition, which permits the employee to start working as soon as USCIS acknowledges the petition.
- The previous employer is required to notify USCIS of the termination, officially ending the H-1B sponsorship and triggering the need to find a new sponsorship.
- Maintaining records, such as recent pay stubs, is crucial for H-1B holders to verify their status and facilitate any necessary immigration processes.
3. Actionable Steps for H-1B Visa Holders Facing Layoffs
Negotiate Extra Time with Your Employer
Request an extension on the termination date, even without pay, to effectively extend your grace period.
Optimize Your Job Search
- Update resumes and LinkedIn profiles to reflect current skills and experiences.
- Target companies are known to sponsor H-1B visas and consider positions with immediate start dates.
- Use specialized job boards and network extensively within your industry.
Keep All Employment Records and Pay Stubs
Documenting your employment history, particularly pay stubs, is essential when filing for a new H-1B position or changing status. Your pay stubs serve as proof of your lawful presence and H-1B status, which could be necessary if you file a change of employer petition or need an extension.
Maintaining your Status
If you’re unable to secure a new job within the 60-day grace period, consider other visa options, such as the B-1/B-2 or F-1 visa. By changing your visa status within the U.S., you can maintain a legal presence and continue searching for new opportunities.
Change Stautes to F-1 and Use Day 1 CPT
For those unable to secure a new H-1B sponsor within 60 days, enrolling in a Day 1 CPT program can be a viable alternative. Day 1 CPT allows F-1 students to work in their field of study while they pursue further education. By transitioning to an F-1 visa, individuals can legally work through CPT authorization from the first day of enrollment.
Advantages of Day 1 CPT:
- Immediate Work Authorization: Start working on CPT from the day you enroll in the program, with no gap in employment.
- Flexibility in Employment: Many Day 1 CPT programs are designed for working professionals, offering evening or weekend classes.
- Potential Long-Term Solution: Day 1 CPT can serve as a bridge for H-1B holders to maintain employment while waiting for another H-1B cycle or other visa options
4. Looking Ahead: Will Layoffs Continue in 2025? What Are Your Options?
With Trump returning to office, many expect stricter immigration policies that could impact H-1B visa approvals and renewals. Under Trump’s previous administration, H-1B applications faced increased scrutiny and higher denial rates, and industry analysts predict that similar policies could return. This could affect hiring practices, especially in the tech sector, and further complicate the situation for H-1B workers.
The implications of this don't just affect first-time H1B applicants; they also impact those who have been laid off and are trying to transfer their H1B to a new employer. The H1B transfer process may become even more challenging, with longer processing times and fewer employers willing to accept the transfer.
In light of economic uncertainty and potential policy shifts, H-1B visa holders should remain vigilant and proactive in managing their status. Having backup plans, such as exploring options like Day 1 CPT, can be a lifeline if the job market remains challenging. Additionally, considering a Concurrent H-1B visa may offer extra security.
For H-1B visa holders, losing a job often means losing visa status. Concurrent employment, which allows holding multiple H-1B jobs simultaneously, provides a safety net. If one position is lost, the other employment helps you maintain visa status and income. This dual employment strategy can be especially beneficial in the volatile tech industry where layoffs are frequent.
By exploring these options, H-1B visa holders can reduce the risk of losing legal status and be better prepared for an uncertain job market.