IBM Consulting ends H-1B visa sponsorship, citing availability of US talent

IBM is ending H-1B visa and Green Card sponsorship for the majority of roles in its consulting business in the US, citing changing skill availability and evolving client requirements. The decision marks a shift in the technology company's approach to hiring foreign professionals as the Trump administration increases scrutiny of employer-sponsored immigration programmes.

The move is specific to IBM Consulting, the company's largest business division, which employs more than 150,000 people globally. It does not represent a company-wide withdrawal of visa sponsorship across IBM.

An IBM spokesperson confirmed the decision to Reuters, saying the consulting business had participated in US high-skilled visa programmes to address skill shortages, but its reliance on these programmes had declined over several years.

"IBM Consulting participates in US high-skilled visa programmes to address skill shortages. That participation has been declining for a number of years and as skill availability and client need have evolved, we have opted to discontinue visa and green card sponsorship for the majority of such roles in IBM Consulting," the spokesperson said, according to Reuters.

The announcement comes at a time when US technology companies face greater scrutiny over their employment of foreign professionals and their use of H-1B visas and employment-based Green Card programmes. 

What IBM's decision means for affected employees

According to a company document reviewed by Bloomberg, employees affected by the decision have been given two options: continue working for IBM outside the US or leave the company by the end of 2026.

The document was reportedly shared with managers in IBM Consulting during the week of the announcement. However, the company has not publicly disclosed the precise number of employees affected or provided a detailed breakdown of the roles covered.

The development raises questions for foreign professionals, including Indian technology workers, who depend on employer sponsorship to work and pursue permanent residency in the US.

The distinction between H-1B sponsorship and Green Card sponsorship is important:

• H-1B visa: This allows US employers to hire foreign professionals for specialised occupations. The visa is tied to an employer-sponsored employment arrangement.

• Green Card sponsorship: This is an employer-supported route through which eligible foreign employees can seek permanent residency in the US.

• PERM labour certification: For many employment-based Green Card categories, employers must complete the Permanent Labour Certification process before proceeding with the relevant immigration petition.

IBM's announcement does not establish that every existing H-1B visa held by its employees has been cancelled or that all affected workers have been dismissed. The impact will depend on the sponsorship arrangements and individual circumstances of employees.

Bloomberg's report indicates that affected employees can continue their careers with IBM outside the US or leave the organisation by year-end. 

Why IBM is changing its visa sponsorship approach

IBM has attributed the decision to changes in the availability of skilled professionals in the US and the requirements of its clients.

The company said its participation in high-skilled visa programmes had already been declining for several years. Its latest decision formalises the withdrawal of sponsorship for the majority of roles within the consulting division.

IBM Consulting provides technology and business advisory services to organisations, including support for technology adoption, business transformation and IT operations. With more than 150,000 employees, the division represents a substantial part of IBM's global workforce.

The company has not indicated that the decision applies to all its business units or employees outside the consulting division.

The announcement also comes as US technology employers reassess their dependence on foreign talent amid changes in immigration policy and increased government scrutiny. 

US administration's scrutiny of foreign-worker programmes

The decision comes amid the Donald Trump administration's efforts to tighten oversight of employment-based immigration and encourage companies to prioritise American workers.

In October 2026, the US administration suspended Microsoft, Adobe and several technology outsourcing companies, including Cognizant, Infosys and Tata Consultancy Services, from the Permanent Labour Certification process.

PERM is a key step in several employment-based Green Card applications. The suspension followed allegations of misuse of foreign-worker programmes by the companies concerned.

The administration has also pursued changes to the H-1B visa system. In 2025, the White House announced a one-time US$100,000 fee on new H-1B petitions, adding to the cost considerations for employers sponsoring foreign professionals.

These developments have increased uncertainty for technology companies that rely on international talent to fill specialised roles.

Labour official reacts to IBM's announcement

The decision also drew a response from Anthony D'Esposito, Inspector General of the US Department of Labour, who linked the company's announcement to the administration's increased scrutiny of visa and Green Card sponsorship practices.

In a post on X, D'Esposito said: "Funny how the corporate calculus changes when scrutiny shows up."

He added that companies whose business models depended on limited oversight should reconsider their approach.

His remarks reflect the broader political debate in the US over the employment of foreign professionals, the use of high-skilled visa programmes and the responsibility of companies to recruit domestic workers.

IBM, however, has cited the changing availability of skills and client requirements as the reasons behind its decision. The company has not attributed the policy change directly to the administration's immigration crackdown.