The 2025 Tech Layoffs & Labor Market Slowdown: What It Means for H-1B Holders and EB-5 Investors

Nathan Patel
Jul 2
3 min read

Updated: 1 hour ago

At EB-5 USA, while we’ve long believed the EB-5 program is the fastest way to permanent residency — however, lately it’s becoming a lifeline. And in today’s uncertain market, that truth is becoming clearer than ever.

Across sectors, the U.S. labor market is showing signs of cooling after several years of rapid post-pandemic expansion. The Federal Reserve’s sustained efforts to keep interest rates high to combat inflation have contributed to a tighter credit environment, reducing business growth, slowing hiring, and more cautious growth strategies. While economic data increasingly indicates economic growth is slowing, the fragile economy poses new challenges for individuals.

For immigrants on employment-based visas, this economic slowdown introduces new risks beyond the typical employee. Even top performers are no longer immune to company restructuring driven by macroeconomic headwinds. Employment becomes less about just finding a job, but a job that is willing to sponsor your H-1B.

What does this mean for millions of non-resident immigrants in the US on F-1, J-1, H-1Bs studying and working in the United States–uncertainty. We have been fortunate the past 15 years to have been a part of a strong US economy without a large recession (excluding the short recession in 2020). Many of the immigrants have graduated from F-1s and J-1s to H-1Bs working for prominent companies like Amazon, Apple, Meta, and Microsoft. However these companies have started to see the growth they have experienced over the past 15 years to slow.

Source: USCIS Top H-1B Employers as of June 2025

In the past year, we have already seen headlines for large companies seeing slowing revenue growth, forcing a halt on expansion plans. This is happening in the backdrop of the growing adoption of artificial intelligence. In 2025, AI spending has accelerated ~40% y/y with more companies looking to increase margins, leveraging the technology in the backdrop of rising prices and a fracturing economy. Combined with slowing economic growth, companies are forced to do more with less, leading to layoffs. Some of the largest H-1B employers (tech) companies have led the charge with these layoffs. Let’s start with the numbers. In 2025 alone:

Intel has laid off 25,000 employees
Amazon has cut 14,100 jobs
Microsoft, IBM, HP, and others have eliminated thousands of roles each

Source: Company Reports as of June, 2025

Meanwhile, job openings — a direct measure of labor market tightness — have been falling steadily. Data from the U.S. Bureau of Labor Statistics (FRED) shows total nonfarm job openings declining from 11 million in early 2022 to under 8 million in 2025. This signals weaker employer demand, slower hiring, and fewer options for visa-dependent professionals.

Source: FRED Data as of June 2025

Job openings data serve as a real-time indicator of employer confidence. When openings decline, it reflects reduced willingness to expand teams or sponsor foreign workers. For H-1B visa holders who must maintain continuous employment with a qualifying employer, this tightening market means competition intensifies for each available role.

Why is this important for H-1B holders? Because H-1B status is directly tied to employment. When jobs vanish, so does your ability to remain in the U.S. Without a new sponsoring employer within 60 days, vacating the country becomes mandatory. In this economic environment, even highly skilled professionals face an uphill battle to secure new offers before their grace period expires.

In just the first half of 2025, major tech firms have announced restructurings to prioritize profitability over headcount growth. Industry analysts note that these layoffs often impact international employees disproportionately, as companies seek to minimize administrative costs and visa sponsorship complexities. For many, the question is no longer 'if' but 'when' they will face employment disruption.

EB-5 Demand During Economic Uncertainty

According to IIUSA, EB-5 program demand historically rises during economic uncertainty as investors prioritize security, permanent residency, and long-term career flexibility. During the 2008 Global Financial Crisis, EB-5 filings surged as professionals sought permanent solutions during uncertainty. In today’s volatile market, securing your green card through EB-5 can be the single most powerful move to protect your family’s future and remain competitive in the global workforce.

Because visa set-asides (like Rural or HUA categories) are limited. When filled, backlogs grow, and timelines extend. Acting during market uncertainty historically produces outsized benefits: it secures your spot before competition intensifies and preserves your career and family continuity in the U.S.

The EB-5 program allows H-1B holders to file for Adjustment of Status concurrently with their EB-5 petition. That means: