H-1B Visa: Why Amazon Stopped Sponsoring New Applications?

In recent times, Amazon has notably reduced its sponsorship of new H-1B visas, focusing instead on renewing existing ones. This shift is not unique to Amazon; several major U.S. tech companies have adopted similar strategies.

Reasons for Amazon's Policy Change:

1. Economic Factors: Global economic uncertainties, including concerns about inflation and potential recessions, have prompted companies like Amazon to reassess their hiring strategies. This reassessment often leads to a reduced reliance on foreign talent.

2. Technological Advancements: The rapid development of artificial intelligence (AI) and automation has transformed various job roles. Positions traditionally filled by H-1B visa holders are increasingly being automated, diminishing the demand for foreign workers in certain sectors.

3. Political Climate: The return of Donald Trump to the U.S. presidency has introduced uncertainties regarding immigration policies. During his previous term, there was heightened scrutiny of H-1B applications and increased wage requirements for visa holders. Anticipating similar policies, companies are reducing their dependence on foreign labor.

Industry-Wide Trends:

This pattern extends beyond Amazon. Data from the United States Citizenship and Immigration Services (USCIS) indicates that many top companies have decreased their H-1B sponsorships:

• Amazon: Approvals declined from over 11,000 in 2023 to just above 7,000 in 2024.

• Infosys: Dropped from over 7,300 approvals to about 5,900 in the same period.

• Tata Consultancy Services (TCS): Experienced a reduction of approximately 1,600 approvals.

These declines suggest a broader industry trend of decreasing reliance on new H-1B visa sponsorships.

Conclusion:

Amazon's decision to limit new H-1B sponsorships aligns with a wider industry movement influenced by economic challenges, technological progress, and evolving political landscapes. Companies are increasingly focusing on renewing existing visas and exploring alternative strategies to meet their talent needs.