TCS Pauses New H-1B Hiring: What It Means for H-1B Applicants and U.S. Employers
Summary: According to a Newsweek report, Tata Consultancy Services (TCS), one of the largest H-1B sponsors in the U.S., will stop hiring new H-1B applicants and reduce reliance on visa-based talent while increasing local hiring in the United States. Below we recap the reported facts and add expert context for both candidates and employers.
What Newsweek Reported
- Hiring shift: TCS’s CEO K. Krithivasan said the company will no longer hire new H-1B applicants in the U.S., focusing instead on expanding local recruitment.
- Scale today: The company reportedly has ~11,000 H-1B employees among ~32,000 U.S. staff and was one of the top H-1B sponsors in FY2025.
- Policy backdrop: The report notes a newly imposed annual $100,000 fee on H-1B visas and mentions ongoing legal challenges to that fee.
Source: “Major H-1B Visa Sponsor Will Not Hire a Single H-1B Applicant Going Forward,” Newsweek, Oct 13, 2025.
Why This Matters
TCS’s stance may influence hiring patterns in the broader IT services sector. For candidates, this could reduce near-term H-1B openings at certain large integrators. For employers, it underscores the need to plan workforce strategies around evolving immigration costs, timelines, and compliance.
Expert View: Practical Implications
For H-1B candidates:
- Diversify targets: Consider a wider range of employers, including product companies, mid-market firms, and cap-exempt institutions (e.g., certain universities and nonprofit research organizations). Requirements and competitiveness vary—seek case-specific legal guidance.
- Calendar discipline: Track the H-1B cap season and any fee or policy changes that affect cost sharing and sponsorship appetite.
- Alternative pathways (situational): Depending on background, some candidates discuss options like L-1 (intra-company transferees), O-1 (extraordinary ability), or employment-based permanent residence routes (e.g., EB-2/NIW, PERM-based categories). These are highly fact-specific and require attorney review.
For U.S. employers:
- Scenario planning: Budget for potential fee changes, assess role criticality, and model local vs. visa-based hiring mixes.
- Compliance rigor: Keep prevailing wage, LCA, public access files, and audit posture tight; policy volatility often increases scrutiny.
- Recruiting strategy: Strengthen university and return-to-work pipelines, and reevaluate near-shore/off-shore mixes as needed.
Key Takeaways
- Per Newsweek, a top H-1B sponsor (TCS) plans to halt new H-1B hiring while growing local U.S. hiring.
- Reported policy changes and costs may be reshaping how some large employers approach H-1B staffing.
- Candidates and employers should monitor official updates and seek qualified legal advice before making decisions.
Stay Informed
We will continue tracking authoritative sources and official announcements related to H-1B policy and employer practices. For personalized guidance, consult qualified immigration counsel.
