How corporate layoffs and the US H-1B to green card system leave skilled workers in prolonged immigration limbo

For thousands of highly skilled professionals working in the United States, the promise of long-term stability has collided with a rigid immigration framework and a volatile corporate economy. As layoffs spread across major industries, particularly technology, foreign workers on H-1B visas are finding themselves stranded in an increasingly unforgiving system.
A Visa System Defined by Scarcity
The H-1B visa, the principal route for skilled foreign professionals, is subject to a strict annual cap. According to data published by US Citizenship and Immigration Services (USCIS), the government issues 65,000 standard H-1B visas each year, with an additional 20,000 reserved for applicants holding US master’s degrees or higher. Once that ceiling is reached, no further visas are granted until the following fiscal year.

Demand, however, remains overwhelming. USCIS reported that for the fiscal year 2026 lottery, nearly 344,000 eligible registrations were submitted, while only 120,141 applicants were selected to file full petitions. The imbalance underscores how tightly rationed legal work authorisation has become, even for experienced professionals already embedded in the US workforce.


Layoffs Trigger Immigration Risk Immediately
These pressures have been intensified due to economic uncertainty. Tens of thousands of layoffs have been announced in early 2025 by US technology firms, as revealed in reports by immigration policy analysts at VisaVerge. Job loss for H-1B employees has significant ramifications that transcend simple unemployment.

According to the USCIS rules, the 60-day deadline is given to the H-1B holders after the termination of their service to find a new sponsor or leave the country. VisaVerge notes that this narrow grace period often proves insufficient in a cooling labour market, particularly when companies are hesitant to hire amid restructuring.

The PERM Process: A Bottleneck Under Strain
Even those who remain employed face obstacles. The employment-based green card process begins with PERM labour certification, a Department of Labour (DOL) requirement designed to confirm that no qualified US workers are available for the role. However, DOL data show that average PERM processing times have stretched to roughly 17 months, excluding mandatory recruitment steps.

Corporate layoffs complicate matters further. Immigration attorneys note that employers are generally unable — or unwilling — to proceed with PERM filings while reducing their US workforce, fearing compliance risks. As a result, green card sponsorship is often paused indefinitely.

Timing is critical. As explained in a Congressional Research Service brief, H-1B holders may extend their visa beyond the six-year statutory limit only if a green card petition has been pending for at least 365 days. Miss out on that window, and your legal status may lapse despite professional success.

Human Consequences and Systemic Costs
The end result is a state of uncertainty extending beyond a specific point in time. In their contingency plan, workers also may think through their fallback options, including going back to their home countries or opting for a self-sponsored procedure via the National Interest Waiver process, despite USCIS trends indicating high evidentiary standards and inconsistent approval rates.

For employers in the US, the stakes are just as high. As the race for top talent globally continues to heat up, the uncertainty could be the factor that ultimately prevents the country from retaining the skilled talent that is already contributing to the economy.

Until such time when immigration policy changes to fit economic times, layoffs will remain an issue that resonates far beyond financial statements — forever detaining skilled workers in a system where timing, as opposed to talent, determines admission or exit.
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