Amazon's Expansion in H-1B and H-4 Visa Sponsorship: Implications for U.S. Tech Labor and Productivity

Amazon's dominance in the H-1B visa program has reached unprecedented levels in 2025, with the company securing 10,044 approvals—a 787-approval increase from 2024—solidifying its position as the largest sponsor of foreign tech talent in the United States These US companies are sponsoring more H-1B visas^[1]. This surge, driven by visa renewals and improved lottery selection rates, underscores Amazon's reliance on the H-1B program to fill critical roles in software development, cloud computing, and data science TCS, Amazon Top H-1B Visa List For 2025 As Trump Slaps $100,000 Fee^[2]. However, the Trump administration's imposition of a $100,000 annual fee on H-1B petitions in September 2025 has introduced regulatory headwinds, raising questions about the long-term sustainability of this model and its impact on U.S. labor dynamics and productivity growth.

The H-1B Program: A Double-Edged Sword for Tech Labor

Amazon's H-1B strategy reflects broader trends in the tech sector. The company's 2025 filings reveal an average salary of $149,812 for sponsored roles, with software developers and systems managers comprising the bulk of hires Amazon.Com Services - Employer Overview, H1B Visas, Green Card^[3]. While proponents argue that the H-1B program addresses skill shortages in STEM fields, critics highlight its role in displacing American workers. For instance, Tata Consultancy Services (TCS), the second-largest H-1B beneficiary with 5,505 approvals in 2025, has faced scrutiny for simultaneously laying off U.S. employees while expanding foreign hiring H-1B Visas in 2025: Amazon Tops List, TCS Follows as Indian IT Firms Lead Approvals^[4]. This duality—filling critical roles versus undercutting domestic labor—has intensified political debates, particularly as the new fee aims to deter “abusive” practices by outsourcing firms TCS second-highest beneficiary of approved H-1B visas after Amazon^[5].

H-4 Visa Gaps and Productivity Implications

Despite Amazon's aggressive H-1B expansion, data on H-4 visa sponsorships remains sparse. While H-4 dependents often contribute to the U.S. economy through education and entrepreneurship, no specific figures for Amazon's H-4 workforce were found in 2025 Rethinking the H-1B Visa Program: A Data-Driven Look at Structural Failures^[6]. This lack of transparency complicates assessments of the program's indirect productivity gains. However, the broader H-1B-driven influx of skilled labor has undeniably bolstered innovation in tech. Amazon's AWS division, for example, reported 131 additional H-1B approvals in 2025, correlating with its leadership in cloud infrastructure and AI development Amazon Web Services - Employer Overview, H1B Visas, Green Card^[7].

Regulatory Shifts and Long-Term Outlook

The $100,000 fee, targeting companies like Amazon and TCS, signals a policy shift toward protecting domestic workers. While this could reduce short-term hiring costs for U.S. firms, it may also force tech giants to accelerate automation or offshore operations. Amazon's recent restart of green card sponsorships via the PERM system suggests a strategic pivot to retain talent amid regulatory uncertainty Amazon to Restart Green Cards for Foreign Workers in 2025^[8]. For investors, the key question is whether these adjustments will maintain productivity growth or stifle innovation.

Conclusion: Balancing Risk and Reward

Amazon's H-1B expansion highlights both the opportunities and challenges of a globalized tech labor market. While the company's investment in foreign talent has fueled productivity and R&D, regulatory pressures and domestic labor concerns pose risks. Investors should monitor how Amazon navigates the new fee and its green card initiatives, as these will shape its ability to sustain growth in a tightening labor environment.