‘Liberation Day layoffs’: How American dream is fast turning into nightmare for H-1B holders facing job cuts, career limbo, or forced returns

Indian engineers in the US, particularly those on H-1B visas, are grappling with mounting uncertainty as layoffs surge across the tech sector. Amid an economic downturn and tightening immigration policies, many are facing career limbo, forced returns, or deportation risks. As reported by Economic Times, social media platforms like Reddit and X are flooded with posts from affected workers, with terms like “Liberation Day layoffs” gaining traction.
Recent layoffs have impacted several US-based startups and hardware companies, leading to entire teams being let go and projects suddenly halted. A testing engineer laid off on April 11 cited “market conditions and instability in the semiconductor industry” as the reason for her termination. Another employee revealed that his team was let go because the project was outsourced.
Experts warn that the situation could worsen, with companies silently trimming up to 20% of their workforce across industries like airlines, hospitality, consumer goods, and technology. Phil Fersht, CEO of HfS Research, stated, “Should the economic situation worsen, I would anticipate layoffs between 5-10% of workforces.”
The layoffs are particularly hard on Indian H-1B visa holders, who make up 72.3% of all H-1B visas issued between October 2022 and September 2023. With over 60,000 tech jobs lost globally in 2024, visa rules are tightening, leaving foreign workers vulnerable to legal constraints and limited flexibility.
Legal experts highlight the challenges ahead for Indian professionals seeking employment in the US. Sowmya Kumar, a partner at Cyril Amarchand Mangaldas, noted, “Given the macroeconomic situation and media reports of visa revocations, Indian citizens seeking employment in the US will have a tougher road ahead.”
Despite the anxiety, experts point to emerging trends that could offer relief. Companies are increasingly shifting roles offshore or adopting remote work models. Neeti Sharma, CEO of TeamLease Digital, stated, “India is emerging as a hub for new jobs in cybersecurity, cloud, GenAI, and ERP support—offering a silver lining amid the disruption.”