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H1B Layoffs in 2024: What H1B Workers on Green Card Application Need to Know
by Phil on Jun 18, 2024 10:27:21 AM
Many sectors, including the tech industry, continue to experience major layoffs in 2024. So far this year, around 80,000 workers in tech have lost their jobs, including at big names like Microsoft, Amazon, and Google. Smaller startups have also initiated layoffs and, in some cases, completely shut down their operations.
These layoffs can have a significant impact on H1B workers, especially for those on green card application. An H1B layoff can be challenging because these workers must quickly find new employment, change their status, or leave the country. While the stress and urgency of this situation can feel immense, being prepared can significantly improve your chances of finding a way to stay in the country.
Major Layoffs in 2024
A number of major U.S. employers have announced substantial layoffs due to restructuring and cost-cutting measures. These layoffs have included numerous foreign workers, sparking concerns over H1B layoffs putting the visa status of many workers in jeopardy.
Microsoft Layoffs
Microsoft is cutting jobs in its Azure cloud unit, including about 1,500 in Azure for Operators and others in Mission Engineering. This follows a massive layoff of 10,000 employees last year. The layoffs are part of Microsoft’s ongoing restructuring efforts to align its resources with key strategic areas, such as AI and cloud services.
Amazon Layoffs
So far in 2024, Amazon has laid off hundreds of employees at Prime Video, Amazon MGM Studios, and its livestream platform, Twitch. The layoffs also affected about 5% of staff in the Buy with Prime division. These cuts followed Amazon’s acquisition of MGM and have been influenced by economic downturns. Amazon previously laid off around 18,000 workers in 2023.
PayPal Layoffs
Earlier this year, PayPal announced it would cut 9% of its workforce in 2024, affecting around 2,500 employees. The digital payment company plans to reduce headcount through direct layoffs and by eliminating open positions. CEO Alex Chriss said this is to help the company operate more efficiently and grow profitably. PayPal previously laid off 7% of its workforce in early 2023.
Tesla Layoffs
This spring, Tesla announced it would lay off more than 10% of its workforce, affecting around 14,000 employees. The company is facing increased competition and declining sales amid the unpredictability of CEO Elon Musk, who is concentrating on ambitious projects like a self-driving taxi, leaving many uncertain about the company’s future.
Dell Layoffs
As revealed in March, Dell Technologies cut about 13,000 jobs over the past year to reduce costs. The company has faced a difficult period with lower demand for personal computers, resulting in an 11% drop in revenue compared to the same period last year. Dell had earlier revealed 6,000 layoffs in February 2023 but did not comment on further layoffs in August of last year.
How Layoffs Affect H1B Workers' Green Card Application
Layoff During the PERM Stage
If you are laid off during the PERM (Labor Certification) stage of the green card process, the impact on your application can be significant. The PERM process requires your employer to demonstrate that no qualified U.S. workers are available for the position and that hiring a foreign worker will not negatively affect the wages and working conditions of U.S. workers. If your PERM application is still pending with the Department of Labor at the time of your layoff, your employer will likely withdraw or abandon the application. Without the backing of an ongoing job offer, the application will almost certainly be denied or withdrawn. In the event that you find a new employer willing to sponsor you, the entire PERM process will need to start from scratch with the new employer, including filing a new PERM application, getting it approved, and then moving on to the I-140 stage.
Layoff During the I-140 Stage
Being laid off during the I-140 stage, after the approval of your Immigrant Petition for Alien Worker, presents a different set of challenges. If your I-140 has been approved for more than 180 days, the petition remains valid, even if you are no longer employed by the petitioning employer. However, if your I-140 approval is less than 180 days old, your employer can withdraw the petition, which may result in its denial. Despite the termination, you retain your priority date from the I-140 petition, which can be advantageous when seeking a new sponsor. The new employer must file a new PERM application and I-140 petition on your behalf. During this transition, it is possible to extend your H1B status if your I-140 was approved, allowing you to continue living and working in the U.S. until you restart the green card process. Nonetheless, the timing of your layoff relative to your I-140 approval is critical, as an early termination could invalidate your H1B extension if the I-140 is revoked.
If you are an H1B visa holder who has been laid off and have an approved I-140, there are several steps you can take to maintain your legal status in the United States, if you fail to find a new job within 60 days. One option is to change to another non-immigrant visa status, such as an F1 student status or a B2 visitor status. It's important to note that having an approved I-140 indicates immigrant intent, which can complicate your application for a non-immigrant visa. Therefore, when applying for a change to F-1 or B-2 status, you must clearly demonstrate your non-immigrant intent, despite your previous I-140 filing. This process can be complex and challenging, and it is often advisable to seek the guidance of an experienced immigration attorney. They can help you navigate the nuances of the application process and improve your chances of successfully transitioning to a new visa status. Despite these challenges, we have several successful cases where individuals with approved I-140 petitions have transitioned to F-1 student status with proper legal assistance. Contact us if you need any support.
Company Policies on Green Card Sponsorship
Recently, many employers have been less willing to sponsor green cards due to strict labor rules designed to protect U.S. workers. The PERM system requires companies to advertise jobs extensively to ensure qualified U.S. workers are not overlooked, making the process costly and time-consuming.
Additionally, recent layoffs in the tech industry have complicated sponsorship efforts. Companies like Amazon and Microsoft have paused green card sponsorships due to these layoffs and legal complexities. The requirement to notify laid-off U.S. workers who might qualify for the job adds to the burden, making employers hesitant to sponsor green cards amidst uncertain economic conditions.
Day 1 CPT as a Backup Plan
Having a backup plan as an H1B worker is important since your job situation could change unexpectedly. If something goes wrong, like losing your job, you need to be ready to find another way to stay and work in the United States.
If you experience an H1B layoff, changing to F1 status and enroll in a Day 1 CPT university can be a good option for secure your legal status in the US. Similarly, if your six-year H1B limit is approaching and there’s no progress on your green card, you can apply for a change of status to F1 and enroll in a Day 1 CPT program, which allows you to work while studying.
What Is Day 1 CPT?
Curricular Practical Training (CPT) is a program allowing international students to work off-campus while studying in the United States. It provides practical experience in your field of study through internships or jobs related to your major. Generally, you need to complete one academic year to become eligible.
Day 1 CPT is unique in that it allows you to start working in your field from the first day of your academic program. Certain universities offer this option, helping you to apply your knowledge in real-world settings right from the start.
The Benefits of Day 1 CPT
Enrolling in a Day 1 CPT program offers numerous benefits, including:
- Immediate work experience: Day 1 CPT allows you to start gaining practical work experience in your field of study from the very beginning of your academic program. This early exposure can enhance your resume and improve your career prospects after graduation.
- Networking opportunities: Day 1 CPT programs often involve internships, co-op experiences, and industry collaborations that provide you with extensive networking opportunities. Building these professional connections can be invaluable for future career opportunities.
- Flexibility and practical orientation: Day 1 CPT is designed to balance academic learning with practical work experience, providing a flexible schedule that can accommodate both study and employment. This dual focus helps you develop practical skills that are directly applicable to your career.
Moreover, Day 1 CPT programs often feature low onsite requirements, meaning you don’t have to be physically present at the campus often. This flexibility allows you to work elsewhere or manage other off-campus commitments.
Conclusion
The ongoing layoffs at major companies such as Amazon, Microsoft, and Tesla have left many H1B workers in challenging positions. An H1B layoff can dramatically affect your visa status, making it essential to have a backup plan in place.
Day 1 CPT programs offer one solution, allowing you to continue working while studying. If you’re affected by these layoffs or otherwise need help planning a change of status, please do not hesitate to contact us.
