IBM has announced it will stop sponsoring H-1B visas for roles in its consulting division by the end of 2026. The company is not ending sponsorship across the entire organization, but employees covered by the decision reportedly have two options: either they continue working for IBM outside the US or leave the company by the end of 2026.

The US Department of Labor has suspended eight major technology and IT outsourcing firms—Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies, Cognizant, Capgemini, Microsoft, and Adobe—from the Permanent Labor Certification Program (PERM). This action comes just a month after the suspension.

Existing H-1B workers are not automatically losing their status, but they must ensure that their employment terms remain unchanged. If employment is terminated, H-1B holders have up to 60 days or until their I-94 expires to find a new sponsor.

An approved PERM alone does not secure the retention of priority dates, and an employer cannot transfer an existing PERM application to another company. If IBM withdraws sponsorship before an I-140 is approved, employees may need to restart the process with a new employer.

However, employees with an approved I-140 are in a stronger position for green card applications.