After recent mass layoffs of American employees, US Senators have raised serious concerns against Tata Consultancy Services (TCS), Cognizant, and eight other major corporations over their large-scale H-1B visa petitions. The move comes as the Senate introduces bipartisan legislation aimed at “reforming and closing loopholes” in the H-1B and L-1 visa programs.
Senators Demand Accountability from Big Tech
Senate Judiciary Committee Chairman Charles Grassley and Ranking Member Richard Durbin questioned companies including Amazon, apple, Deloitte, Google, JPMorgan Chase, Meta, Microsoft, Walmart, in addition to TCS and Cognizant. The lawmakers demanded clarity on hiring practices, recruitment strategies, and pay discrepancies between American employees and H-1B visa holders.
The senators highlighted that the tech sector’s unemployment rate is currently “much higher” than the national average. According to the Federal Reserve, recent STEM graduates in the US face disproportionately high unemployment, raising further doubts about the need for foreign hires when skilled local talent is available.
Criticism of the H-1B Visa System
Senators Grassley and Durbin have long criticized the H-1B program, alleging that it is often exploited to replace American workers with cheaper foreign labor. Their newly proposed H-1B and L-1 Visa Reform Act is designed to protect US employees, ensure fair treatment for visa holders, and curb fraud and abuse in the system.
Senators’ Strongly Worded Letter
In a letter dated September 25, 2025, the senators stated: “We cannot overlook the large, continuous layoffs that you and your peers in Big Tech C-suites have ordered over the past few years. At the same time you have been laying off your employees, you have been filing thousands of H-1B visa petitions for foreign workers.”
They argued that it is “hard to believe” companies cannot find qualified American tech workers while so much domestic talent remains unemployed. The letter specifically pointed out TCS’s announcement of laying off more than 12,000 workers, including Americans, while simultaneously requesting approval for thousands of H-1B workers.
Company-Specific Layoffs and H-1B Hiring
Investigations and Legal Issues
The Equal Employment Opportunity Commission (EEOC) is currently investigating TCS for allegedly terminating senior American employees in favor of younger foreign workers on H-1B visas. Cognizant also faced a federal jury ruling in 2024, which found the company guilty of favoring South Asian workers over Americans—leading to punitive damages.
Meanwhile, companies like Amazon, Google, and Meta have defended their layoffs, citing automation, AI adoption, and efficiency measures, even as they continued filing thousands of visa petitions.
The Bigger Picture
The senators emphasized that while Big Tech companies report record revenues, they continue to reduce American jobs and expand H-1B hiring. This contradiction, they argue, raises questions about the fairness of US immigration and labor policies.
As bipartisan calls for reform grow stronger, the spotlight remains on TCS, Cognizant, and US tech giants to justify their employment practices and ensure a level playing field for American workers.
| Company | Layoffs (Recent) | H-1B Approvals (FY 2025) |
|---|---|---|
| TCS | 12,000+ employees (including US workers) | 5,505 |
| Cognizant | Thousands of employees (US & global) | 2,493 |
| Amazon | Tens of thousands due to AI adoption | 10,044 |
| Tens of thousands, including 35% of managers | 4,181 | |
| Meta | Quarter of staff since 2022; 3,600 in 2025 | 5,123 |
| Microsoft | 16,000 in 2025 despite record profits | 5,189 |
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