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TrueNorth Capital

4th Oct · SEBI-Registered Analyst

TCS
, Cognizant, and Other Tech Firms Face US Scrutiny Over H-1B Visa Practices

Ten technology companies, including

TCS
(TCS), Cognizant, Google, Amazon, Meta, Microsoft, and Deloitte, have received emails from the United States Senate Judiciary Committee requesting information on their H-1B visa practices. → The emails were sent by Senate Judiciary Committee Chairman Senator Chuck Grassley and Ranking Member Senator Dick Durbin. → The inquiry follows increased scrutiny on the H-1B visa program amid efforts by US President Donald Trump's administration to revamp the visa process. → The Senate panel questioned the firms' visa hiring practices and demanded a response by October 10. → The email to TCS and its CEO, K Krishnamurthy, pointed out that the company recently announced plans to lay off over 12,000 employees worldwide, including American staff. → It further noted that despite these layoffs, TCS has been simultaneously filing H-1B visa petitions for thousands of foreign workers. → The email suggested that TCS cannot find qualified American tech workers to fill these positions, which raises concerns about the actual necessity of the H-1B hiring. → Separately, Cognizant faced a jury punitive damages verdict and an Equal Employment Opportunity Commission allegation for allegedly favoring newly hired South Asian H-1B employees over older American workers. → The scrutiny is occurring even as the US tech sector's unemployment rate is reportedly "well above" the overall joblessness rate.

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