tl;dr
Tata Consultancy Services (TCS) announces an end to H-1B visa hiring in the U.S. amid stricter immigration policies, sparking debates about the future of global tech talent and corporate adaptation.
**Tata Consultancy Services Sheds H-1B Visa Hiring Amid U.S. Immigration Crackdown**
In a significant shift, Tata Consultancy Services (TCS), one of the largest H-1B visa sponsors in the United States, has announced it will cease hiring new employees on the visa amid a tightening federal immigration policy under the Trump administration. The decision by TCS CEO K Krithivasan reflects broader challenges facing multinational tech firms as they navigate stricter regulations and rising costs associated with the H-1B visa program.
**A Strategic Shift**
Krithivasan told the *Times of India* that TCS would “continue to hire more locally,” aiming to reduce its reliance on visa-based talent. The company, which employs around 11,000 H-1B visa holders in the U.S. out of its 32,000 workforce, stated it would focus on rotating employees back to India and prioritizing local hiring. “We have enough people on H-1 already in the U.S. I don’t think we would be looking for adding to that count,” he said, emphasizing a long-term strategy to align with evolving immigration policies.
The move comes as the Trump administration intensified scrutiny of the H-1B visa program, which allows U.S. employers to hire skilled foreign workers. In September 2025, President Donald Trump signed an executive order imposing a $100,000 annual fee on companies using H-1B visas, citing “abuse” of the program. Critics argue the fee disproportionately affects tech firms and could harm the U.S. workforce, while proponents claim it ensures only the “top, top people” are hired.
**Why the H-1B Visa Matters**
The H-1B visa is a critical tool for tech companies to access global talent, but it has long been a flashpoint in debates over immigration. TCS, based in Mumbai, was the second-largest H-1B sponsor in the U.S. in fiscal year 2025, with 5,505 visas approved, trailing only Amazon. The company’s decision to scale back H-1B hires signals a potential broader trend as firms adapt to the Trump administration’s tougher stance.
**Legal Challenges and Industry Reactions**
The $100,000 fee faces legal challenges, including a lawsuit filed by a coalition of unions and employers seeking to block it. Commerce Secretary Howard Lutnick defended the policy, stating, “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.”
TCS’s shift also highlights tensions between corporate interests and policy changes. While the company emphasized its commitment to local hiring, Krithivasan noted that its original strategy involved rotating H-1B employees back to India, a practice that has become more complex under the new rules.
**What’s Next?**
TCS’s decision could mark a turning point for tech firms reliant on H-1B visas. As the legal battle over the fee continues, companies may increasingly prioritize domestic talent or explore alternative strategies to maintain competitiveness. For now, the move underscores the growing pressure on multinational corporations to balance global operations with evolving immigration landscapes.
As the debate over H-1B visas intensifies, TCS’s pivot reflects a broader reckoning for the tech industry—one that will shape the future of talent acquisition in the U.S. and beyond.