How 2026 workforce reductions are affecting H-1B visa holders and what options remain.
Layoffs in the technology sector continued into 2026, with major companies and startups alike reducing headcount. For H-1B visa holders, a layoff is not just a career setback — it triggers a 60-day grace period to find a new sponsor, change status, or depart the country. Understanding the landscape and your options is critical if you are an H-1B worker facing job loss.
The tech industry's correction that began in late 2022 has continued to ripple through the economy. In 2026, companies across the technology, fintech, and enterprise software sectors have announced significant layoffs. While some sectors — particularly AI, cybersecurity, and healthcare tech — continue to hire aggressively, traditional enterprise software, e-commerce, and adtech companies have been cutting costs. Federal contractor layoffs related to government efficiency initiatives have added to the numbers.
When an H-1B worker is laid off, they have a 60-day grace period (or until the end of their authorized I-94 validity, whichever is shorter) to take action. During this period, you can seek a new H-1B employer to file a transfer petition, change to another nonimmigrant status (such as B-1/B-2 visitor status), or prepare to depart the United States. The 60-day clock starts on the date of termination, not the last day of pay or benefits.
The fastest path to maintaining H-1B status after a layoff is finding a new employer willing to file an H-1B transfer petition. Under AC21 portability rules, you can begin working for the new employer as soon as the transfer petition is filed — you do not need to wait for approval. This makes it critical to start the job search immediately after a layoff. The new employer must file a new LCA, and the transfer petition should be filed before the 60-day grace period expires.
Despite layoffs in some sectors, demand for H-1B talent remains strong in several areas. Artificial intelligence and machine learning companies are actively hiring, as are cybersecurity firms, healthcare technology companies, and financial institutions. Defense and aerospace contractors, particularly those working on AI and data analytics projects, have also increased H-1B hiring. Workers with skills in AI, cloud infrastructure, and data engineering are finding the most opportunities.
If you are on H-1B status, take proactive steps to protect yourself. Keep your immigration documents organized and easily accessible. Maintain an updated resume and active professional network. Understand your company's financial health and watch for warning signs of layoffs. If you have an approved I-140 for a green card, you have additional protections and portability rights under AC21. Consider consulting with an immigration attorney to understand your specific options before a layoff occurs.
When negotiating severance after a layoff, H-1B workers should consider immigration-specific factors. Some employers will agree to maintain the H-1B sponsorship for a period after the layoff, effectively extending the time you have to find a new sponsor. Others may offer to cover the cost of filing a change of status application. Document your last day of employment carefully, as this date determines when your 60-day grace period begins.
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Search H-1B Sponsors on Wisa →You have a 60-day grace period from the date of termination to find a new H-1B employer, change to a different visa status, or depart the U.S. This grace period was formalized in a 2017 rule and applies to H-1B, H-1B1, L-1, O-1, and TN workers. The period may be shorter if your I-94 expires before 60 days.
You cannot work until a new employer files an H-1B transfer petition on your behalf. However, under H-1B portability rules, you can begin working as soon as the new petition is filed — you do not need to wait for approval. This means you should focus on finding a new employer quickly and having them file the transfer as soon as possible.
If you cannot find a new sponsor within the grace period, you have several options: change to B-1/B-2 visitor status (which does not authorize employment but allows you to remain in the U.S.), change to F-1 student status if you plan to enroll in school, or depart the country. Filing a change of status application before the grace period expires is critical to maintain lawful presence.
Yes, significantly. An approved I-140 that has been pending for 180 days or more provides portability under AC21 Section 106. You can change employers and retain your priority date. If your I-140 has been approved for at least 180 days, it cannot be revoked by your former employer. This makes early green card filing one of the most important protections an H-1B worker can pursue.