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H-1B scrutiny: TCS faces Senate heat on 5,505 H-1B hires while cutting American jobs

H-1B scrutiny: TCS faces Senate heat on 5,505 H-1B hires while cutting American jobs

Tata Consultancy Services (TCS), India’s largest IT services firm, is under scrutiny from two senior U.S. Senators over its hiring practices. In a letter addressed to CEO K Krithivasan, Senate Judiciary Committee Chairman Charles Grassley and ranking member Richard Durbin raised concerns about the company’s reliance on H-1B visa workers while laying off American staff.

The letter, dated September 24, 2025, highlights that TCS has laid off over 12,000 employees globally — including nearly 60 in its Jacksonville office — even as it continues to file thousands of H-1B visa petitions, as per a PTI report. For fiscal year 2025, TCS received approval to hire 5,505 H-1B workers, making it the second-largest employer of new H-1B visa recipients in the US.

Business Today was unable to verify the report independently.  

“At the same time you have been laying off American employees, you have been filing H-1B visa petitions for thousands of foreign workers,” the letter stated.

The Senators questioned the firm’s rationale for seeking foreign tech workers when, according to them, hundreds of thousands of American tech professionals remain unemployed. “With all of the homegrown American talent relegated to the sidelines, we find it hard to believe that TCS cannot find qualified American tech workers to fill these positions,” they wrote.

The letter also referenced an ongoing Equal Employment Opportunity Commission investigation into TCS for allegedly replacing older American workers with South Asian H-1B employees, warning that the current hiring strategy “is doing itself no favours” during this probe.

Grassley and Durbin posed nine detailed questions, seeking clarity on whether American workers were displaced, whether TCS outsources hiring to third-party staffing firms, and if H-1B hires receive equal pay and benefits as their American counterparts. They also asked whether TCS conceals H-1B job postings separately from general listings.

TCS has been asked to respond with data by October 10, 2025.

The scrutiny coincides with a broader regulatory tightening around H-1B visas. President Donald Trump recently signed a proclamation to raise the H-1B visa fee to $100,000 starting in FY27 — up from the current $2,000 to $5,000 range. Financial analysts expect the steep hike could drive IT firms to either ramp up offshore operations or boost local hiring.

Source – https://www.businesstoday.in/latest/corporate/story/h-1b-scrutiny-tcs-faces-senate-heat-on-5505-h-1b-hires-while-cutting-american-jobs-496758-2025-10-03

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