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US senators pose 9 questions to TCS as debate over H-1B visa continues
Two US Senators have questioned TCS's hiring practices, highlighting layoffs of American staff while filing for H-1B visas.
Two senior US Senators have written to Tata Consultancy Services (TCS), questioning its hiring practices in the United States. They have asked the company to explain why it is laying off American employees while continuing to hire thousands of foreign workers on H-1B visas, and whether it pays H-1B workers the same as US staff.
In a letter dated September 24 to TCS CEO K Krithivasan, Senate Judiciary Committee Chairman Charles Grassley and ranking member Richard Durbin raised concerns about the company’s employment strategies. They noted that TCS plans to lay off over 12,000 employees worldwide — including American staff — while filing thousands of H-1B visa petitions.
“At the same time you have been laying off American employees, you have been filing H-1B visa petitions for thousands of foreign workers,” the letter stated.
The Senators highlighted that TCS laid off nearly five dozen employees at its Jacksonville office alone. According to data cited in the letter, the company received approval to hire 5,505 H-1B workers in FY 2025, making it the second-largest employer of newly approved H-1B beneficiaries in the US that year.
“With all of the homegrown American talent relegated to the sidelines, we find it hard to believe that TCS cannot find qualified American tech workers to fill these positions,” the letter said.
Nine questions raised
The Senators have posed nine detailed questions, seeking responses by October 10, with supporting data. Key among them:
- Why TCS continues to hire foreign tech workers despite widespread layoffs in the US tech sector over the past few years.
- Whether TCS made a “good faith effort” to fill open roles with American workers before filing H-1B petitions.
- Whether any American employees were displaced by H-1B hires.
- If the company lists H-1B recruitment ads separately from general hiring ads to obscure them.
- Whether H-1B employees receive the same pay and benefits as American workers with equivalent qualifications.
The letter also questions whether TCS outsources hiring to contractors or staffing agencies that then place H-1B workers within the organisation. It seeks clarity on how many H-1B employees are directly employed and paid by TCS versus outsourced to other firms.
H-1B Visa Costs Soar
The scrutiny comes amid a broader US policy shift on skilled worker visas. US President Donald Trump recently signed a proclamation raising the H-1B visa fee for new applications to $100,000, up from the current $2,000–$5,000 range. The new fee structure will take effect from FY 2027.
According to brokerage firm Motilal Oswal Financial Services, the sharp increase could push IT companies to expand offshore delivery or boost local hiring in the US. For example, with 5,000 filings, the total application fees could amount to $500 million.
