Tata Consultancy Services (TCS), India’s largest IT services company, is under the scanner of U.S. lawmakers as part of a sweeping Senate probe into how major tech firms use the H-1B visa programme while simultaneously cutting domestic jobs. The bipartisan investigation, led by Senate Judiciary Committee Chairman Chuck Grassley and Ranking Member Dick Durbin, aims to assess whether such practices disadvantage American workers.
Lawmakers Question Foreign Hiring Practices
Letters sent to CEOs of 10 major companies — including Amazon, Apple, Microsoft, Google, Meta, and TCS — raised concerns over thousands of H-1B visa petitions being filed even as layoffs rise in the U.S. tech sector. Lawmakers argue that this trend may be hurting domestic job opportunities, especially for recent STEM graduates facing rising unemployment.
TCS stood out as the only Indian-headquartered company targeted in the probe. The firm was asked to submit detailed responses by October 10, 2025, regarding its employment policies, recruitment practices, and compensation structure for foreign workers.
Job Cuts and Visa Approvals Raise Red Flags
The letter pointed to TCS’s recent layoffs of over 12,000 employees worldwide, including about 60 American workers in Jacksonville, Florida, while continuing to aggressively hire foreign talent. In FY2025, TCS secured 5,505 new H-1B visa approvals, making it the second-largest employer of newly approved H-1B holders in the U.S.
Lawmakers asked why the company continued to pursue H-1B hiring despite domestic layoffs, whether American workers were being replaced by foreign employees, and if salaries and benefits for H-1B hires matched those of their U.S. counterparts.
Possible Reforms to the H-1B System
The probe comes amid an ongoing investigation by the U.S. Equal Employment Opportunity Commission (EEOC) into allegations that TCS replaced older American workers with younger H-1B employees. Lawmakers believe such practices may be suppressing wages and undermining the domestic workforce.
The Senate Judiciary Committee will review responses from all companies involved before considering legislative reforms to tighten H-1B rules, ensuring fair competition and worker protection.
TCS Remains Silent
TCS, which employs over 600,000 people globally and counts the U.S. as its largest revenue market, has not publicly commented on the Senate inquiry. The outcome of the investigation could significantly shape the future of foreign talent hiring in the American tech sector.
