"For companies like Amazon, Google, Microsoft, and major IT services providers such as Infosys, Tata Consultancy Services, and Cognizant - some of the largest H-1B sponsors - the new rules could upend staffing models. Amazon and AWS alone secured more than 12,000 approvals in the 2025 fiscal year to date, according to USCIS data compiled by TD Cowen. The changes come at a precarious moment."
"If Trump's new $100,000 fee is applied across the sector's 2024 H1-B approval base, the costs could run into the billions of dollars for top sponsors, although exemptions tied to national security or other carve-outs may soften the blow. "When it rains, it pours," Bryan Bergin, an analyst at TD Cowen, wrote in a note to clients on Sunday. "This is among the last things that Services sector sentiment needed amid persistent cyclical pressure weighing on growth from geopolitical/macro uncertainty and structural concerns caused by generative AI.""
President Trump's proposed H-1B fee change could impose a $100,000 charge on many visas, potentially costing top sponsors billions if applied across 2024 approvals. Major H-1B sponsors such as Amazon, Google, Microsoft, Infosys, Tata Consultancy Services, and Cognizant could see staffing models upended and higher labor costs. The IT services sector already faces macroeconomic uncertainty, slowing growth, and pressure from generative AI adoption, which increases vulnerability. Some exemptions tied to national security or carve-outs may reduce the impact, but many firms may reconsider hiring strategies and explore shifting recruitment to Canada and Latin America.
Read at Business Insider
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