Layoff Continues: US Consultancy Firm Thoughtworks Lays Off 500 People Globally!
Layoff in the US tech sector have made news since November 2022.
Thoughtworks has just added its name to a growing list of software businesses that had done layoff off thousands of workers because of recession concerns. Thoughtworks, a software consulting firm, has revealed plans to lay off approximately 500 people, or 4% of its global workforce, to reduce expenses in the face of challenging macroeconomic conditions. Thoughtworks, listed on the Nasdaq, employs more than 12,500 people in 18 countries.
The business is well-known in India also. Some reports claim that the corporation told affected workers about the decision earlier this week and that the layoffs will proceed in the ensuing days.
In an initial public offering (IPO) that garnered $773 million, it was listed on Nasdaq in 2021. During the fourth quarter, Thoughtworks’ revenue increased 8.3% year over year to $310.7 million (Q4). In contrast to a $16.9 million loss a year prior, Thoughtworks reported a net income of $16.1 million in the fourth quarter. In the current quarter, the business anticipates sales of between $303 million and $305 million.
Why is the layoff of Indians in the US a pathetic scenario?
Layoffs in the US tech sector have made news since November 2022. Together, Microsoft, Google, Meta, and Amazon have persuaded 200,000 IT specialists to depart, at least 30% of them are Indians on H-1B and L1 visas. Also, Google will be laying off additional workers outside of India.
Yet, the present economic downturn and potential for a market recession would probably lead businesses to reduce non-essential spendings, such as marketing and social media management. The wave of mass layoffs that began with startups and internet businesses in 2022 has now spread to several other industries, including the banking sector, which has recently reduced employment. These include significant Wall Street banks, asset managers, and fintech firms as they struggle to stave off macroeconomic problems that have put pressure on consumers and soured demand in a number of foundational business categories.
A wave of industry-wide layoffs has affected Indian engineers who were fired in the US. Unless they can find another employment or modify their immigration status, workers who are laid off risk having to leave the country in 60 days under the conditions of their visas.
According to the U.S. government, Indians accounted for roughly 75% of special visa holder petitions that were approved in 2021, and according to estimates from the industry, they are also responsible for about 1/3rd of the roughly 2 lakh IT jobs that have been lost in the country over the past year. As a result, the lives of many Indian laborers have just been turned upside down. Hence, they experience emotional distress.
According to others, the existing deadline exposes migrant workers to labor abuses by dishonest employers who are aware of their vulnerable legal statuses, such as giving less pay or a lower-level position than they would otherwise command. Although there are alternative employment options, they can be in a different industry, pay less, or require individuals to move. Significant limitations apply to L-1 visa holders as well.
Individuals with L-1 visas reflect intracompany transfers to the United States, in contrast to H-1B holders who can look for employment with another company if they are laid off.
According to labor experts, even immigrants who have survived a recent wave of layoffs may be impacted if their work status or compensation is reduced as a result of corporate cost-cutting. For instance, Google has stated that it is now halting some new labor certification applications, which are a component of green card applications submitted by immigrants. If a green card application has been submitted, an H-1B visa holder may stay in the US for an additional three years plus a three-year extension after the initial six-year period.
According to supporters, a pay decrease or a promotion within the same employer may be sufficient to threaten the status of a foreign worker’s green card application. If you still have a job but your pay has been decreased, you may now violate the Department of Labor’s wage regulations, which might have an impact on your status. While H-1B employees are paid competitively, they frequently have additional expenditures that leave them with little flexibility during even brief periods of unemployment.
The last line.
The layoffs are triggering gigantic negative situations in the present situation. Let’s hope to see some good in the upcoming months of the year.
Edited by Prakriti Arora