U.S. Defends Firm That Secured 5,189 H-1B Visas Before Laying Off 16,000 American Workers

A U.S. company that secured 5,189 H-1B visas is under scrutiny after laying off 16,000 American workers. The move sparked criticism over misuse of the visa program, which was designed to fill labor shortages with skilled foreign talent, not replace domestic jobs. U.S. officials defended the company’s actions, arguing compliance with program rules, but the controversy has reignited debate over H-1B reforms and the balance between protecting American workers and meeting industry labor demands.

White House Defends $100,000 H-1B Visa Fee, Citing Job Losses for American Workers

The White House is defending President Donald Trump’s proposal to impose a $100,000 annual fee on H-1B visa applications, citing what it calls “abuse” of the program and rising unemployment among U.S. citizens. A fact sheet released Friday argued the move is necessary to protect American workers from being replaced by “lower-paid foreign labor.”

According to the administration, the share of IT workers on H-1B visas has surged from 32% in 2003 to more than 65% in recent years. The fact sheet also pointed to job market strains, noting unemployment rates of 6.1% for computer science graduates and 7.5% for computer engineering graduates more than double the rates for biology or art history majors. Between 2000 and 2019, the number of foreign STEM workers in the U.S. more than doubled, while overall STEM employment grew just 44.5%.

The administration cited multiple examples of U.S. companies that received thousands of H-1B approvals while laying off large numbers of domestic employees. One firm reportedly secured 5,189 H-1B workers for FY 2025 while cutting 16,000 American jobs this year. Another received 1,698 approvals but laid off 2,400 employees in Oregon. A third cut 27,000 U.S. positions since 2022 while receiving 25,075 H-1B visas. Yet another was granted 1,137 approvals this year despite laying off 1,000 American workers in February.

“Voters gave President Trump a resounding mandate to put American workers first, and he has worked every day to deliver on that commitment,” the White House said, highlighting Trump’s efforts to renegotiate trade deals, bring manufacturing jobs back home, and ensure employment gains go to American-born workers. The administration claimed that since Trump returned to office, all job growth has gone to U.S.-born workers contrasting it with the Biden administration, when it said gains went to foreign-born employees.

The decision has sparked concerns in India, where roughly 71–72% of H-1B visas are issued. New Delhi warned the move could disrupt families and impact remittances. “The full implications of the measure are being studied by all concerned, including Indian industry,” said Randhir Jaiswal, spokesperson for India’s Ministry of External Affairs. He added that both U.S. and Indian industries “have a stake in innovation and creativity” and would be expected to consult on a path forward.

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Source: NDTV