What Makes L-1 and O-1 Visas More Attractive Than H-1B Now Amid Tech Layoffs?

With increasing scrutiny over H-1B visas and severe job cuts in the tech sector in the U.S., Indian professionals are looking at other visa options primarily L-1 and O-1 to pursue their work aspirations in America.

The U.S. Citizenship and Immigration Services (USCIS) showed a 27% decrease in H-1B approvals compared to the previous year which is the lowest all time since FY21. Since nearly 70% of H-1B beneficiaries are Indian nationals every year, this decline together with the numerous layoffs at Microsoft, Google and Intel has created an uncertain situation for many professionals reported by Economic Times.

“There’s a growing sense of fear and anxiety around international travel and visa stamping,” says Joel Yanovich with the Murthy Law Firm. Therefore, we are seeing more applicants and employers even trying to pivot to the L-1 (intra-company transfer) and O-1 (extraordinary ability) visa, which have no annual cap like the H-1B does.

Why L-1 and O-1 Are Gaining Favor

• Unlike H-1B, these are not based on chance.
• There are clearly defined paths for renewals and extensions.
• No annual cap, which reduces uncertainty.
• Faster processing and fewer denials.

Experts on immigration have also observed that companies are pro-actively repositioning employees to either Canada or other foreign locations for a period of time so that they can eventually qualify for an L-1 or an EB-1C green card.

At the same time, demand for EB-5 investor visas is growing, showing a 50% increase of Indian applicants since January 2025. An EB-5 offers a path to legal stay of between 3-6 months.

As uncertainty regarding the H-1B visa increases under strict scrutiny, the L-1, O-1 and EB-5 visas now present more reliable opportunities for skilled Indian workers and their families especially those seeking long term security in the U.S.