H-1B Layoffs Surge: Will Europe Absorb the IT Talent Exodus?

The Trump administration’s policies and shifting stance on the H-1B visa program have created ripple effects far beyond the United States, driving foreign IT professionals to consider other destinations. While Trump’s second term has seen a more favorable approach to the H-1B system—aiming to balance economic demand with worker protections—the reality remains that many visa holders are now facing an uncertain future in America. With anticipated layoffs in 2025, the gates of Europe and other developed nations like Canada and Australia may soon be flooded with non-US, non-European developers and consultants searching for stability.

Why focus on collecting Dollars when you can grab some Euros.

H-1B Under Trump: More Support, But Still Volatile

In a significant shift, President Trump has expressed support for the H-1B program, recognizing its role in maintaining America’s competitive edge in the tech industry. The Department of Homeland Security’s H-1B Modernization Rule, implemented in January 2025, was intended to improve efficiency, clarify eligibility, and provide greater flexibility for employers and visa holders. Yet, this hasn’t translated into security for H-1B workers, as layoffs—particularly in the tech sector—continue to loom.

The Reality of H-1B Layoffs

Google’s 2023 layoffs, which impacted around 12,000 employees, included a significant number of H-1B visa holders. Reports indicate that, in 2022 alone, the top 30 H-1B employers hired over 34,000 new foreign workers while simultaneously laying off at least 85,000 employees. This underscores the vulnerability of H-1B visa holders, who must secure new jobs within 60 days of termination or risk deportation. Given the U.S.’s tightening labor policies and rising protectionist sentiment, many H-1B workers now look to alternative destinations, including Western Europe.

The Search for Alternatives: Europe and Beyond

With the United States becoming an increasingly uncertain option, many IT professionals are setting their sights on countries with historically more open policies, such as Canada and Western Europe. Germany, France, Sweden, the Netherlands, and Italy remain attractive, at least on paper. However, while their governments may welcome foreign talent, local companies and workers are often less enthusiastic.

Eastern European nations, by contrast, tend to prioritize their own labor force and remain relatively closed off to large-scale foreign hiring. This protectionist approach may soon become more common across the continent as European economies struggle, and unemployment rises among domestic IT professionals. A year ago, before the AI revolution took center stage, European politicians might have championed the influx of foreign IT specialists as a boon. Now, with a growing surplus of local consultants, freelancers, and developers, the appetite for hiring cheaper, less-experienced foreign labor is waning.

The Harsh Reality for Non-European IT Professionals and Indian developers in Europe

The dream of working in Europe is not always as advertised. Indian, South American, and Middle Eastern developers frequently express frustration over high taxes, limited opportunities, and social exclusion. While European governments promote inclusivity, many local companies hesitate to hire foreign workers, and integration into the workplace remains difficult. Complaints of racism, discrimination, and feeling like an outsider are common.

This raises an important question: If 20,000 Danish IT specialists attempted to enter the Indian job market, would they be embraced with open arms? Would they be welcomed if they offered to work for half the local salary? The answer is clear: like the U.S. now, every country eventually prioritizes its own workforce when push comes to shove.

The Future: Less Dependence on Foreign Labor?

As AI, automation, and efficiency gains continue to reshape industries, the need for foreign IT workers in Western economies may significantly decline. Nationalistic policies, economic pressures, and technological advances are all converging to reduce dependency on imported labor. For IT professionals, this signals a need to rethink career strategies. Instead of relying on the next “rich” country to provide employment, perhaps it is time for skilled professionals to invest in their own economies and create demand locally.

For IT consultants, the message is clear: the golden era of easily migrating to wealthier nations for work is coming to an end. The future belongs to those who can adapt, innovate, and build opportunities in their own countries rather than chase uncertain prospects abroad. Indian developers in Europe are still welcomed, but with less enthusiasm.