Which Companies No Longer Sponsoring H 1B Visas? (2025 Update)

By Richard T. Herman, Esq.

At a Glance

As of 2025, an increasing number of U.S. employers, US companies, and American companies — including major consulting- and tech-service firms, large retailers and logistics operators — are publicly pausing, cutting back, or halting their sponsorship of the H‑1B visa for new hires. Changes in federal policy (notably the new $100,000 fee for many new petitions, which is cost prohibitive for many midsize businesses and could hinder their ability to hire high skilled workers) have triggered corporate responses. (Newsweek)

Fast Fact:

On October 22, 2025 Newsweek published a list of U.S. companies that have announced they will no longer (or greatly reduce) H-1B sponsorship. (Newsweek)

1. Why Companies Are Stepping Back from H-1B Sponsorship

Important Note

The H-1B programme was designed to allow U.S. employers to hire foreign nationals in “specialty occupations”. The H-1B program includes annual caps for both regular visas and advanced degree exemptions, and each year USCIS announces when it has received enough petitions to meet these caps. Recent reforms have increased the cost and compliance burden for employers, prompting many to reassess their sponsorship strategy. (Newsweek)

Key Insight

Corporate decisions to halt H-1B sponsorship typically stem from a combination of: Uncertainty from the H-1B lottery system, which leads to a loss of job offers and complex outcomes for sponsoring companies. Additionally, companies may avoid sponsoring H-1B visa holders due to public relations concerns during high domestic unemployment. High costs, legal complexities, and an increased focus on local hiring are also significant factors driving this trend.

• High fee and cost burdens — For example, the new $100,000 fee for certain H-1B petitions announced by the Donald Trump administration, which officially took effect on September 21 and applies only to new applicants. This fee was implemented to attract top global talent but has been criticized for potentially damaging the U.S. competitive edge in technology and innovation. (Newsweek)
• Compliance/vetting risk — More scrutiny on wage levels, worksite and third-party placement rules make sponsorship more exposed. (Newsweek)
• Workforce strategy shifts — Companies choose to hire locally, offshore, or rely less on visa-based roles. In one case, the CEO of Tata Consultancy Services (TCS) said “we have enough people on H-1 already in the U.S. … we will not be looking to add to that count.” (Newsweek) Many organizations are remaining thoughtful in their approach, using multiple levers within their business model to adapt to changing immigration policies and ensure workforce resilience.

At a Glance: Reason Patterns

Expert Tip

If you are a foreign professional seeking employment in the U.S., always read the job posting carefully for phrases such as “any required employment visa sponsorship must be current” or “candidates must be authorised to work in the U.S. without employer sponsorship” — this often signals the employer does not provide H-1B sponsorship.

2. Notable Companies That Have Announced They Will Stop or Greatly Reduce H-1B Sponsorship

Need to Know: This list is derived from public statements and job-posting analyses. Corporate policy can change; verify directly with the employer.

In recent months, major companies—including major tech companies and consulting firms—have made announcements regarding changes to their H-1B sponsorship policies. Some referenced their recent earnings or recent earnings call when discussing these shifts. These updates reflect broader industry trends as companies respond to new government regulations and fees.

Based on the Newsweek article, the following companies have taken public steps: Intuitive Surgical has halted sponsorship for applicants requiring H-1B visas due to recent policy uncertainty. (Newsweek)

Comparison Chart: Sponsoring vs Non-Sponsoring

Key Insight

The widespread focus is not solely on “companies no longer sponsoring at all” but rather on “companies saying: we will not hire new H-1B candidates”. That represents a strategic pivot in talent acquisition. Increasingly, companies are prioritizing hiring the best talent, whether locally or through alternative pathways, as part of this shift.

3. Geographic & Industry Patterns (2025 Outlook)

Location Perspective

• States like California and Washington (with large tech hubs) remain dense sources of H-1B sponsorships. (Newsweek)
• By contrast, Midwestern and plains states (where large retail/logistics firms operate) are seeing more employer retreat from sponsorship.
• India dominates the H-1B program, accounting for over 70% of the recipients in recent years, with China being the second largest source.
• The changes are expected to create fewer opportunities for knowledge transfer within the U.S.

At a Glance

Important Note

Even as some firms withdraw, other companies continue to increase H-1B usage — particularly in highly specialised roles. For example, Newsweek reports major U.S. employers increased their H-1B approvals in 2025. (Newsweek)

4. Implications for Foreign Professionals & HR Teams

For Foreign Workers

• Verify employer policy up front: Ask whether the employer will sponsor your visa, whether they have done so recently, and whether postings allow “needs sponsorship”.
• Plan for alternatives: Given firms are reducing new sponsorship, consider other visa categories (e.g., O‑1 visa, L‑1 visa, or staying on STEM OPT) as part of your strategy.
• Geographic flexibility helps: Being open to tech/service roles in states/hubs which still sponsor may improve your chances.

For Employers / HR Teams

• Sponsorship cost & risk analysis: With new fees and regulatory scrutiny, firms must treat H-1B as a high-cost strategic decision — not automatic. The complexity of the H-1B application process can be particularly challenging for smaller businesses.
• Talent strategy shift: Many firms are moving to local hiring or offshore delivery models — HR must adapt.
• Legal counsel is essential: Changing sponsorship policies require coordination with immigration attorneys, risk-management review, and clear internal communication. Ongoing legal challenges are questioning the president’s authority to implement these H-1B policy changes, making it even more important for employers to stay informed and seek legal guidance.

Expert Tip

Before accepting an offer that depends on H-1B sponsorship, ask the employer (in writing) for the following:

• Whether they have a documented H-1B sponsorship policy
• How many H-1B petitions they filed in the prior year
• Whether the role you are offered has been approved previously under H-1B

5. How to Verify an Employer’s Sponsorship Status

Step-by-Step Guide

1. Visit the U.S. Citizenship and Immigration Services (USCIS) Employer Data Hub and search by the employer’s name for H-1B petition counts and approvals.
2. Review the U.S. Department of Labor (DOL) Labor Condition Application (LCA) Disclosure Data for that employer (shows LCA filings).
3. Scrutinize the employer’s job postings for language such as “must be authorised to work in U.S. without employer sponsorship”.
4. Ask HR directly: “Do you provide H-1B sponsorship for this role?”
5. Confirm with an immigration law adviser if there is any ambiguity.

At a Glance: Verification Checklist

• Employer’s H-1B petition history (USCIS)
• LCA filing history (DOL)
• Job-posting sponsorship language
• HR confirmation
• Law-firm advice

6. Law Firms and Legal Advisors Experienced in H-1B Sponsorship & Employer Policy

When companies shift their visa sponsorship policy, or when individuals need counsel, experienced immigration law firms play a vital role. Below is a curated list.

Key Insight

Selecting the right legal adviser early can make a difference — not only for individual visa success, but for companies navigating policy shifts and ensuring compliance.

7. Outlook for 2025-Beyond: What to Watch

• Policy & Fee Landscape: The introduction of the $100,000 fee (for certain new H-1B petitions from outside the U.S.) is a major inflection point. The uncertainty caused by the administration’s executive proclamation and the announcement made by President Donald Trump regarding the new fee has led many companies to reconsider their sponsorship strategies. Newsweek noted companies are responding rapidly. The aim of the fee is to ensure that entry via H-1B visas is reserved for top talent only. Silicon Valley and tech leaders have expressed concerns that the increased fee will hurt innovation and impede access to skilled labor. (Newsweek)
• Industry Responses: Expect further movement toward local talent, off-shoring, and alternative pathways. The White House and President Trump have emphasized that these policy changes, including Trump’s proclamation, are intended to prioritize American workers and merit-based immigration. TCS already signalled the shift. Cognizant has significantly reduced its reliance on H-1B visas, mainly using them for select technology roles. (Newsweek)
• Still Some Growth in Sponsorship: Even as some firms exit, others increase H-1B filings — especially in highly specialised STEM, tech and healthcare roles. The administration announced these changes in response to concerns about the U.S. labor market. (Newsweek)
• Geo/State Variation: Sponsorship changes will be uneven — major tech hubs may retain sponsorship; other sectors/regions may see greater withdrawal.

Expert Tip

Country-of-origin, role specialty, employer size and prior sponsorship history remain key risk/selection factors for H-1B eligibility and corporate decision-making.

8. Summary Table — Quick Reference

Here is a consolidated quick-reference for companies publicly reported to reduce or stop H-1B sponsorship (as of late 2025): Tata Consultancy Services announced it would no longer hire through the H-1B program and will focus on hiring local talent in the U.S. Similarly, Cognizant stated it will only consider applicants who are legally authorized to work in the United States without the need for employer sponsorship.

Key Takeaways

• Many large U.S. employers — especially outside core tech — have publicly said they will not sponsor or will greatly reduce new H-1B visa hiring in 2025.
• The policy trigger: major reforms (including a $100,000 fee) and increased regulatory/compliance risk have made H-1B sponsorship less automatic for many companies. These reforms are intended to prioritize American workers and protect American wages.
• Retail, logistics and large IT-services/outsourcing firms lead the withdrawal trend; core tech, specialised STEM, and healthcare still show sponsorship, though under pressure.
• For foreign professionals: verify employer sponsorship policy, explore alternative visa pathways, and understand the shifting landscape.
• For employers/HR: treat H-1B sponsorship decisions as strategic, not routine — factor cost, risk, talent-strategy and compliance.
• Law-firm support is key: firms like Herman Legal Group (and others listed) can guide both employers and individuals through the changing regime.
• Even as sponsorship falls in some sectors, demand for foreign-skilled talent remains in others — so the H-1B story is not uniformly declining, but evolving with stratification. Industry analysts warn that increased H-1B costs may cause a “brain drain,” with talent moving to countries with more flexible immigration policies.