Does it make sense for companies to hired h1bs while layoffs are ongoing?
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Hiring in India and laying off in most of the rest of the world has been IBM's MO for much of the last decade.
Hiring H1B while layoff has been the business model for IBM (and other Indian consulting bodyshops) for now 3 decades. It slowed down in recent days primarily because there aren't much of applicable US jobs left then Trump's anti-immigrant policies added more hurdles.
If you still see any H1B hiring and think it's potentially illegal (e.g., skills that can be found among US citizens), you should report to USCIS. It is our duty as citizens.
@OP what layoff?
What area is hiring? I thought none were company wide