‘H-1B clock started ticking’: Founder reveals why 2 lakh Indians are among the 'highest' hit by AI layoffs

The global tech industry is undergoing a major revamp this year. From Microsoft to Meta, numerous tech giants have laid off thousands of employees in an AI revolution that is proving to be more of a bane than a boon to many. While owners think of monetary costs, they leave behind the human cost of losing a job: the job security, the dependence and the reliance on a consistent stream of income.

Now, an Indian founder has highlighted how Indians are actually the highest hit by AI-caused layoffs. Shveta, founder of Artha AI, took to X to share how being laid off impacted an Indian engineer's life.

In her post, she shared that an Indian engineer at Meta was laid off via an email at 11 pm Bangalore time. His wife is in the country along with him on an H-4 dependent visa while his child is in third grade. "His Bellevue apartment lease has 8 months left. His H-1B clock just started ticking — 60 days. Meta's stock went up on the news. Zuck called it becoming more efficient," she wrote of the family in Seattle, USA.

"This is what AI transformation actually looks like for 2 lakh Indians abroad. AI's impact on Indians abroad is highest," she added.

Many users agreed with the founder's views. "This is the harsh reality nobody talks about. For many Indians abroad, one layoff doesn’t just mean losing a job. It can mean: visa pressure, school disruption for kids, relocation stress, financial, uncertainty, and identity crisis overnight. AI won’t just replace jobs. It will redefine job security itself," wrote one.

"The 60-day H-1B countdown is the real cruelty here. Stock bumps while families scramble to restructure their lives across continents," added another.

Impact of layoffs on Indian immigrants

According to data tracked by Layoffs.fyi, more than 110,000 technology workers have lost jobs globally so far this year. A substantial portion of those affected are believed to be foreign workers employed in the United States, particularly Indians, who account for the largest share of H-1B visa holders.

For Indian employees working on H-1B visas, the impact reaches far more than just employment. Under the rules of the US Citizenship and Immigration Services (USCIS), workers who lose jobs on H-1B visas are provided a 60-day grace period or the time period of the expiration of I-94 validity to either find a sponsoring employer, switch visa categories or leave the US. Since the grace period begins from the employee's last official working date, the countdown begins immediately after termination.

These effects matter such as children's schooling, healthcare coverage, rental obligations, ongoing mortgages, and more. Most commonly, they revert to filing for a B-1 or B-2 visitor visa through Form I-539.

For decades, the American technology industry has provided unique and fruitful career opportunities for Indian engineers and software developers. However, due to the tightening of the H-1B visa rules and the AI revolution, it seems the India-US migration might finally take a hit.