May 2026 turned out to be one of the toughest months for software engineers, tech employees and federal workers across the United States. With AI-driven restructuring and government efficiency initiatives in full swing, thousands of jobs were eliminated. For NRIs on H-1B, L-1 or Green Card pathways, this wave has created serious uncertainty around visa status, family stability and long-term plans in America.

Key Highlights (May 2026)

  • Tech layoffs: nearly 28,000–30,000 jobs cut in May alone
  • 2026 YTD total: over 140,000–150,000 tech jobs lost
  • Federal impact: continued reductions in force (RIFs), with hundreds affected in key agencies in May

Major Tech & Software Layoffs in May 2026

US companies are flattening teams and redirecting budgets toward AI infrastructure. Even profitable firms are cutting to stay competitive.

Notable layoffs in May 2026

  • Meta — ~8,000 employees (~10%) — AI investments & reorganization
  • Intuit — ~3,000 (17%) — structural AI shift
  • Wix — ~1,000 (20%) — flatter AI-focused org
  • Cloudflare — ~1,100 (20%) — efficiency & restructuring
  • Groupon — ~400 (23%) — AI-native pivot
  • ClickUp — ~285+ (22%) — AI productivity focus
  • Others (LinkedIn, Coinbase, PayPal, Cisco) — hundreds to thousands — cost optimization + AI

Middle management, traditional software development, sales and support roles have been impacted the most. High-demand areas like AI/ML, data engineering, cloud architecture and prompt engineering continue to see selective hiring.

US Federal Government Job Reductions

The federal workforce continues to face restructuring under ongoing efficiency drives. May 2026 updates:

  • Hundreds of positions converted or removed at Health & Human Services (HHS), making future cuts easier
  • State Department and other agencies reported targeted reductions
  • Contractors supporting federal IT projects are also feeling the ripple effect

These changes create additional pressure on tech roles tied to government contracts.

Why This Hits USA NRIs Hard

  • H-1B visa stress — the 60-day grace period after layoff forces quick action. Many Indian professionals are racing against time while managing mortgages, children's schooling and spousal careers in the US
  • Green Card backlogs — delays in PERM and I-140 processing add anxiety during uncertain employment
  • Family impact — high cost of living in tech hubs (Bay Area, Seattle, New York, Austin) makes prolonged unemployment especially painful
  • Market reality — hiring is slower and more selective; non-AI roles face tough competition

Practical Tips for NRIs Navigating 2026 Layoffs

1. Upskill fast

Prioritize Generative AI, Machine Learning, Cloud (AWS / Azure / GCP) and data infrastructure certifications. Many companies are hiring for these even during cuts.

2. Visa protection strategies

  • Explore H-1B portability immediately
  • Consider O-1 (extraordinary ability) if you have strong achievements
  • Look at EB-1 / EB-2 NIW options to reduce employer dependency
  • Spouse on H-4 EAD? Maximize that income stream

3. Job search tactics

  • Update LinkedIn daily and network aggressively in NRI/tech groups
  • Target mid-sized companies and startups that still sponsor H-1B
  • Use platforms like TrueUp.io, Layoffs.fyi and Wellfound

4. Financial safety

  • Build/maintain a 6–12 month emergency fund
  • Review health insurance, 401(k) loans and severance packages carefully

5. Diversify

  • Side income via consulting, freelancing (Upwork) or AI-powered tools
  • Explore opportunities in Canada (Express Entry), UK or UAE as backup plans while staying in the US

Outlook for the Rest of 2026

Analysts predict tech layoffs could reach 300,000–370,000 by year-end. Federal restructuring may stabilize but will continue selectively. The good news: companies investing heavily in AI are still hiring top talent in emerging skills.

NRIs who adapt quickly — by building AI expertise and strengthening immigration options — will come out stronger.

Stay Updated

Follow TrueUp.io, Layoffs.fyi, and NRI Globe for regular US-focused career and immigration insights. Have you been impacted by the May 2026 layoffs? What strategies are you using to navigate this? Share in the comments (anonymously if preferred).

Frequently Asked Questions

How many people were laid off in US tech in May 2026?

Approximately 28,000–30,000 tech jobs were cut in May 2026 alone, bringing the year-to-date total to 140,000–150,000. Meta led the wave with ~8,000 cuts (~10% of workforce), followed by Intuit (~3,000), Cloudflare (~1,100), Wix (~1,000), Groupon (~400) and others.

What should an H-1B holder do immediately after a layoff?

Use the 60-day grace period to file an H-1B transfer with a new sponsor, change to a different non-immigrant status (B-2 visitor, H-4 dependent, F-1 student), or depart the US. Begin job applications and network outreach within the first week — start the I-129 transfer process as soon as you have a new offer.

Are there alternatives to H-1B for NRIs facing layoffs?

Yes. The O-1 visa (extraordinary ability) suits accomplished professionals with publications, awards or significant achievements. EB-1A and EB-2 NIW (National Interest Waiver) green-card categories let you self-petition without employer sponsorship — both are viable backup paths to permanent residence.

Which roles are still hiring in 2026 despite the layoffs?

AI/ML engineering, data engineering, cloud architecture (AWS/Azure/GCP), prompt engineering, AI security, and senior product roles remain in high demand. Middle management, traditional CRUD development and routine support roles face the most pressure.

Sources & References

Editorial Review

Reviewed by NRI Globe editorial team — 30 May 2026. Layoff numbers reflect publicly reported figures aggregated from TrueUp, Layoffs.fyi and company filings. Immigration guidance is general; always consult a licensed US immigration attorney for case-specific decisions.