H-1B Workers and Tech Layoffs 2026: 90,000 Jobs Cut, 60-Day Grace Period Under Siege, and Where to Find Sponsorship

90,000 Tech Jobs Gone in 2026 — and H-1B Workers Are Running Out of Time

The tech industry is deep into its third consecutive year of mass layoffs. In the first three months of 2026 alone, over 90,000 tech workers have been let go across 212 companies — roughly 973 people per day. For American workers, a layoff means a stressful job search. For H-1B visa holders, it means a 60-day countdown that can end with deportation.

This guide covers the latest layoff numbers, what the 60-day grace period actually means in 2026 (it is less reliable than you think), which industries are still sponsoring H-1B workers, and a step-by-step action plan if you have been laid off.

The 2026 Tech Layoff Numbers

Major Layoffs This Year

2025 Context

The 2026 numbers follow an even worse 2025, when approximately 245,953 tech workers were laid off globally. Microsoft trimmed 15,000 between May and July 2025. Google conducted smaller reductions throughout the year. The cumulative toll since the layoff wave began in late 2022 now exceeds 500,000 tech workers.

H-1B Filing Declines by Major Employers

The layoffs are directly reflected in H-1B sponsorship activity:

When the biggest H-1B sponsors are cutting sponsorship volumes by 34–50%, the ripple effects hit the entire immigration ecosystem.

The 60-Day Grace Period: What It Actually Means in 2026

The Rules

When an H-1B holder is terminated, they have a 60-calendar-day grace period to:

Find a new employer to file an H-1B transfer

Change to another visa status (B-2, F-1, etc.)

Depart the United States

This grace period was codified in 2017 DHS regulations. It is not a statutory right — it is a regulatory provision that DHS can modify or eliminate at any time.

What's Changed in Practice

The grace period has not been formally shortened, but its reliability has eroded significantly under the current administration:

Notices to Appear during grace period. Immigration attorneys have reported cases of DHS issuing Notices to Appear (NTAs) — the first step in removal proceedings — to H-1B holders who are still within their 60-day grace period. This is legally controversial but is happening.

Higher denial rates for late transfers. H-1B transfer petitions filed in the second half of the grace period (days 30–60) are seeing elevated denial rates compared to transfers filed in the first two weeks. While USCIS has not published a policy change, the pattern is consistent across multiple attorney reports.

Stricter scrutiny of grace period status. Adjudicators appear to be questioning whether applicants who file transfers near the end of the grace period genuinely had a continuous plan to maintain status, or were simply using the full window to remain in the US while searching for options.

The Practical Upshot

Treat the grace period as 30 days, not 60. While you technically have 60 days, the safest course is to have a new H-1B transfer petition filed within the first 30 days of termination. Waiting until day 45 or 50 carries significantly more risk than it did even a year ago.

Step-by-Step: What to Do If You Are Laid Off on H-1B

Day 0–3: Immediate Actions

Get your termination documentation. Request a termination letter with your last day of employment clearly stated. This date starts your 60-day clock.

Do NOT sign anything that waives your rights without having an immigration attorney review it. Some severance agreements include provisions that could complicate your immigration status.

Contact an immigration attorney immediately. Do not rely on your employer's immigration counsel — they represent the company, not you. Find an attorney who represents individuals.

Check your I-94 expiration date. Your grace period is the lesser of 60 days or the time remaining on your I-94. If your I-94 expires in 30 days, your grace period is 30 days.

Do NOT travel internationally. Once you leave the US, you cannot re-enter on a terminated H-1B. There is no exception to this.

Day 3–14: Job Search and Backup Plans

Activate your network aggressively. Reach out to every professional contact. H-1B transfers require an employer willing to file immediately — many companies have streamlined processes for H-1B transfers, but they need to know you are available.

Target companies known for fast H-1B transfers. Larger employers (Amazon, Google, Microsoft, Meta, major banks, Big 4 consulting firms) have immigration legal teams that can file transfer petitions quickly. Smaller companies may take weeks to get their immigration counsel engaged.

Consider cap-exempt employers. Universities, nonprofit research organizations, and government research institutions are cap-exempt — they can sponsor H-1B visas at any time without going through the lottery. If you can find a role at a university or research nonprofit, this eliminates lottery risk entirely.

File a change of status to B-2 as a backup. If you are not confident you can secure a new H-1B transfer within 60 days, file a B-2 (visitor visa) change of status application. This extends your legal presence in the US while the application is pending. Note: you cannot work on B-2 status.

Day 14–30: File the Transfer

File the H-1B transfer petition. Your new employer files Form I-129 with the transfer classification. Include premium processing ($2,805) if possible — this guarantees a response within 15 business days.

Once filed, you can start working immediately. H-1B portability allows you to begin work for the new employer as soon as the transfer petition is filed (not approved). This is a critical provision — use it.

Day 30–60: Monitor and Escalate

If you have not found a new sponsor by day 30, seriously consider:

- Filing for B-2 change of status if you haven't already - Exploring F-1 student visa options (enrolling in a degree program) - Consulting with your attorney about departing before the grace period expires to avoid any NTA risk

Track your petition status through your USCIS online account. If you filed with premium processing, expect a response within 15 business days.

Which Industries Are Still Hiring H-1B Workers

The tech sector may be contracting, but several industries continue to actively sponsor H-1B workers:

Artificial Intelligence and Machine Learning

Despite broader tech layoffs, AI-focused roles remain in high demand. Companies are cutting traditional engineering positions while expanding AI teams. Key roles:

AI/ML Engineers: $150,000–$250,000+

Data Scientists: $130,000–$200,000

ML Infrastructure Engineers: $160,000–$220,000

Research Scientists: $140,000–$230,000

Approximately 34% of all H-1B certified positions are now in AI/ML-related roles — a significant increase from just two years ago.

Healthcare and Biotech

Healthcare has emerged as one of the most reliable H-1B sponsorship sectors:

University hospitals and academic medical centers (cap-exempt)

Biotech research companies

Health IT and digital health firms

Pharmaceutical companies

Many healthcare employers are cap-exempt nonprofits, meaning they can sponsor H-1B visas year-round without the lottery.

Finance and Consulting

Major financial institutions and consulting firms continue to sponsor at competitive wages:

JPMorgan, Goldman Sachs, Morgan Stanley: Quantitative analysts, technologists ($150,000–$250,000)

Deloitte, EY, PwC, KPMG: Technology consulting, data analytics ($100,000–$180,000)

Hedge funds and trading firms: Quantitative researchers ($200,000–$400,000+)

Cap-Exempt Institutions

This is an underappreciated option for H-1B workers:

Universities: Teaching and research positions at accredited universities are cap-exempt

Nonprofit research organizations: Think tanks, research institutes, and foundations with research missions

Government research labs: National labs, NIH-funded institutions

Cap-exempt employment avoids the lottery entirely and is not subject to the $100,000 supplemental fee for US-based workers. For workers who have been laid off and cannot risk another lottery cycle, cap-exempt employers offer the most reliable path.

The Financial Impact on H-1B Workers

Layoffs create cascading financial pressures for H-1B holders that US citizens and permanent residents do not face:

What You Lose

Work authorization: You cannot legally work once your grace period ends (unless a transfer is filed)

Continuity of status: Gaps in H-1B status can complicate future green card applications

Time toward green card: PERM labor certification processes are tied to specific employers. A layoff typically means starting over with a new PERM at a new company

What You Keep

Your I-140 priority date (if approved for 180+ days): If your I-140 was approved at least 180 days before your termination, you retain your priority date even if the employer withdraws the petition. This is critical for green card backlog calculations.

Your STEM OPT eligibility (if applicable): If you were previously on STEM OPT, some scenarios allow reverting to that status, though this is complex and requires attorney guidance

Your professional reputation and network: This sounds obvious, but in the H-1B context, your professional network is your lifeline. Companies that know your work are far more likely to expedite a transfer petition.

Why This Layoff Cycle Is Different for H-1B Workers

Three factors make the current environment uniquely challenging:

1. The 60-Day Grace Period Is Less Reliable

As discussed above, the grace period is being undermined in practice even though it has not been formally changed. H-1B workers cannot count on the full 60 days the way they could in previous years.

2. Fewer Companies Are Sponsoring

With overall H-1B registrations down 27% year-over-year and major employers cutting sponsorship volumes, there are simply fewer companies willing to file H-1B petitions. The companies that are sponsoring are being more selective, preferring candidates at higher wage levels (which also improves their employees' lottery odds under the wage-weighted system).

3. The Cost of Sponsorship Has Skyrocketed

For employers considering sponsoring a laid-off H-1B worker who might need to go through the lottery next year, the total cost now includes the $215 registration fee, potential $100K supplemental fee, and $5,000–$10,000 in standard filing and legal fees. Many employers — especially mid-size companies — simply cannot justify this expense.

Resources for Laid-Off H-1B Workers

USCIS Contact Center: 1-800-375-5283 (for case status inquiries)

American Immigration Lawyers Association (AILA): Find an immigration attorney at aila.org

H1B Data Hub: Use our employer search tools to identify companies actively sponsoring H-1B workers and their salary data

Your university career services: Many universities offer alumni career services, including for international graduates seeking H-1B sponsorship

The Bottom Line

The intersection of mass tech layoffs and tightening H-1B policies has created a genuinely dangerous environment for immigrant workers. The 60-day grace period is shorter in practice than on paper, fewer companies are sponsoring, and the financial barriers to sponsorship have never been higher.

If you are an H-1B holder in a company that is conducting layoffs: prepare now, not after you receive notice. Update your resume, activate your network, identify cap-exempt employers, and have an immigration attorney on speed dial. The difference between a smooth transition and a crisis is often just a few days of preparation.

Data sourced from SkillSyncer layoff tracker, Benzinga, American Bazaar, VisaVerge, Manifest Law, and immigration attorney reports. Updated April 2026.