Amazon blamed AI for layoffs, then hired cheap H1-B workers, Senators allege

U.S. Senators are pressing major technology firms for clarification regarding their hiring practices, particularly after reports surfaced of mass layoffs followed by the filing of numerous H-1B skilled labor visa petitions. In a series of letters directed to prominent companies such as Amazon, Meta, Apple, Google, and Microsoft—some of the largest sponsors of H-1B visas—Senators Chuck Grassley (R-Iowa) and Dick Durbin (D-Ill.) sought detailed information about recruitment strategies, salary differences, and benefits between H-1B workers and American employees. The inquiry follows Grassley's correspondence with Department of Homeland Security Secretary Kristi Noem, where he urged the department to halt the issuance of work authorizations for student visa holders. Grassley argues that these authorizations pose a risk of technological and corporate espionage while exacerbating unemployment among college-educated Americans. Should DHS choose to continue issuing these authorizations, he has called for a comprehensive explanation of the legal foundations for their actions. In their letters, the Senators highlighted that the unemployment rate within the tech sector is significantly higher than the national average, raising concerns about the timing and implications of these visa applications. Amazon is under the spotlight particularly, as data from U.S. Citizenship and Immigration Services revealed that the company was the largest sponsor of H-1B visas in 2024, filing 14,000 petitions. This contrasts sharply with other firms like Microsoft and Meta, which each sponsored around 5,000 visas. Allegations against Amazon include claims that the company cited the adoption of generative AI tools as justification for laying off 'tens of thousands' of employees, while simultaneously hiring over 10,000 foreign H-1B workers in 2025. The situation has raised eyebrows and questions about the ethical implications of such hiring practices in light of recent layoffs.