Lawmakers are pressing Amazon, Meta, Google, and other major tech firms for allegedly laying off U.S. workers in the name of AI automation, then turning around to hire thousands of lower-cost H‑1B visa holders. The clash comes as Trump’s new $100,000 visa fee and a potential freeze on student work authorizations threaten to upend how Silicon Valley recruits talent.

Summarized by AI.

Source summarized:
Amazon blamed AI for layoffs, then hired cheap H1-B workers, senators allege

Key Points

• Senators Grassley and Durbin sent letters to Amazon, Google, Meta, Microsoft, and Apple demanding details on H‑1B hiring vs. American layoffs.
• Amazon sponsored ~14,000 H‑1B visas in 2024—more than any other Big Tech company—even after citing AI adoption for massive layoffs.
• Tech unemployment is above the national average, according to the senators’ letters.
• Trump issued an executive order imposing a $100,000 fee per new H‑1B employee to discourage replacing U.S. workers with cheaper foreign labor.
• Letters demand disclosure of salary and benefit disparities between visa holders and American employees, with a response due by October 10.
• DHS may face pressure to halt student work authorizations, impacting international grads’ ability to stay in the U.S. for 12–36 months.
• Startups warn the new visa fee could stifle innovation and favor cash-rich Big Tech.
• Critics argue the current H‑1B system incentivizes layoffs, NDAs, and outsourcing under the guise of AI-driven restructuring.

Summary

Washington is turning up the heat on Big Tech after a series of eyebrow-raising layoffs in the tech sector. Senators Chuck Grassley and Dick Durbin accused companies like Amazon and Meta of using “AI-driven” layoffs as cover to discharge tens of thousands of U.S. workers, while simultaneously ramping up H‑1B visa sponsorships. According to federal data, Amazon topped the list with 14,000 visas in 2024, well outpacing Microsoft and Meta, each at around 5,000. The senators’ letters express disbelief that these firms, flush with record profits, cannot find qualified Americans for the same jobs.

The controversy dovetails with a seismic policy shift from the Trump administration. A new executive order slaps a $100,000 fee on each new H‑1B visa petition, far above the previous $1,700–$4,500 range. The White House frames the move as necessary to close loopholes allowing firms to outsource IT work and replace local employees with lower-paid foreign labor. Trump’s order also introduces a weighted lottery system favoring high-paying roles and cites evidence that the number of foreign STEM workers has doubled since 2000, while domestic STEM job growth lagged behind. Big Tech has mostly stayed silent, while startups complain the policy could push innovation overseas.

Meanwhile, Grassley is also pressuring the Department of Homeland Security to halt post-graduation work authorizations for foreign students, which he claims risk both domestic employment and corporate espionage. If DHS complies, it would close a key pathway for international students to gain U.S. work experience for 12 to 36 months after finishing a degree, disproportionately hitting Indian students. While some executives, like Netflix’s Reed Hastings, have cautiously supported reform, the overall tech sector is bracing for a reshaped hiring landscape—one where AI layoffs, visa politics, and six-figure hiring fees could fundamentally change the labor market calculus.

• Amazon blamed AI for layoffs, then hired cheap H1-B workers, senators allege - Senators accuse Amazon and other tech giants of exploiting H‑1B visas after AI-driven layoffs, while Trump’s new visa fee ignites industry backlash.

#tech #culture #AI #policy #immigration

Summarized by ChatGPT on Sep 26, 2025 at 7:25 AM.