American dream crumbles: Over 2 lakh IT workers laid off in US, most of them from India

Hyderabad: A 30-year-old Deepthi (name changed) of Hyderabad who lives in New York City, received an email from her company that she no more is required. She was devastated by the news, wondering why her five years of experience and master's degree from a top university weren't enough.

Deepthi is not an isolated case. Many young people from both Telugu states, who are in their 30s, fear losing their H-1B visas within months. Under the terms of their visas, employees who are laid off have to leave the country in 60 days unless they can find another job or manage to change their immigration status.

"I received this email, and now I'm not sure how to approach my parents. It felt like a breakup. Now I only have until December of this year to find a new job, so I'm currently on a job search. Feeling down about the situation, I decided to explore new places and distract myself. Worst-case scenario, I may have to return to India with no other options," said Deepthi, who has been in the US for the last 6-7 years

In another case, a Vijayawada couple in the United States got married six months ago. Both of them lost their jobs and have time only till January 2024 to get a new job to stay in the country.

"The field I work in is unique, and there are very few companies in the US. I applied for a job in my previous organization. I am waiting for a response. What's more worrying is my wife also lost her job, and she is pregnant now," said a 38-year-old who works in an electronics chip designing company.

Why Layoffs?

During an economic recession or financial difficulties, companies may experience a decline in business and revenue. In such situations, they may need to reduce costs to stay afloat, which can result in layoffs.

At this time, companies may undergo strategic changes in their operations, such as mergers, acquisitions, or a shift in business focus. These changes often lead to layoffs as the company restructures its workforce to align with its new goals and objectives.

From Google to Amazon, thousands of employees are losing their jobs in various top companies. Microsoft, Alphabet, Facebook's parent company Meta, Yahoo, Zoom, Spotify, and Lyft are among the companies to have cut thousands of jobs in recent months.

According to US media reports, nearly 200,000 IT workers have been laid off since November last year. A record number of employees were laid off by companies like Google, Microsoft, Facebook, and Amazon. In the first five months of this year, US companies have announced plans to cut 417,500 jobs, a 315 percent cut. About 40 percent of them are Indian IT professionals who are on H-1B and L1 visas.

A week ago, Microsoft said it was cutting additional jobs. The company, based in Washington state, whose latest fiscal year ended on June 30, did not disclose the total number of jobs. In January, the technology company announced the laying off of 10,000 of its more than 221,000 employees to adjust to changing macroeconomics and to cut overall costs.

Speaking to NewsMeter, an employee who lost her job in the United States said, Unfortunately, my company entered into a new segment that failed, causing them to shift the department to India and lay off all involved. I was part of the project and have until December to find a new job.

Got the news during a vacation to India

Another employee working in New York got the news about losing her job while she was in India to attend her sister's wedding. "I work in the Biotechnology sector, and it is quite shocking to see layoffs in my field. In my case, the company did a cross-country move of the office. It incurred costs more than expected. This was expected to be the reason for layoffs. I got this news two days after I reached India, without any previous speculation," said Nandini (name changed).

Created a WhatsApp group

Indian employees who lost their jobs formed WhatsApp groups to help each other find new opportunities. Over 500-800 jobless techies share job postings and discuss visa options. They receive support from immigration attorneys who offer consultancy services.

Global Indian Technology Professionals Association (GITPRO) and Foundation for India and Indian Diaspora Studies (FIIDS) launched a community-wide effort to try and help these IT professionals by connecting job seekers to job referrers and informers. FIIDS will work on efforts to influence policymakers and decision-makers of US Citizenship and Immigration Services (USCIS).

Finding a bride is now tough

Not to be surprised, many Telugu people struggle to get suitable partners for their sons. Gone are those days when families were eager to get their daughters married to a boy working in the US.

Thanks to the layoffs, a US job is no longer the USP it used to be. Despite the men having good jobs in the US, the bride's parents are worried about layoffs.

"Three years ago, when I got a job in the US, I was flooded with matches from my family members, forcing me to get married. I thought I should get settled and get married. Now, when my parents approach anyone, the first question they ask is how secure my job is and what the consequences are if I lose a job," said Varma, currently working in the United States.

Lawmakers urged to double H1B quota

On the brighter side, an association of more than 2,100 small and mid-size IT companies in the US, mostly owned and operated by Indian Americans, has urged lawmakers to double the H-1B quota from the current 65,000 to address the massive shortage of highly skilled workforce in the country.

More than 240 members of the association named ITServe converged in the US capitol and planned to reach out to Congressmen and Senators to brief them about the massive shortage of highly skilled workforce in the US.

They said the shortage of highly skilled workforce is impacting their businesses and the American advantage in general.

In addition to increasing the number of H-1B visas from 65,000 currently to 130,000 per annum, ITServe is also urging lawmakers to increase the investment in STEM (Science, technology, engineering, and mathematics) education in the US to develop the required high-skilled force within the country.

Coinciding with the Congressional advocacy of ITServe, Indian American Congressman Raja Krishnamoorthi introduced the High-Skilled Immigration Reform for Employment (HIRE) Act. The act would strengthen US competitiveness by helping to close the skills gap – the space between the skills required for jobs that employers need to fill and the skills possessed by current prospective employees.

It would help to close the skills gap by providing additional funding to strengthen US elementary and secondary school science, technology, engineering, and math (STEM) education programs. It also doubles the number of H-1B visas available annually from 65,000 to 130,000 to allow American employers, including in critical technology sectors, to draw the best talent from around the world.