In a recent development, Amazon Inc. (NASDAQ:AMZN) has reportedly declared that it will not be sponsoring any new U.S. Green Cards for foreign workers for the rest of the year.
What Happened: Amazon had informed its employees earlier this year about its decision to extend the pause on all new PERM filings through 2024, Business Insider reported on Wednesday based on an internal announcement.
The PERM process, managed by the U.S. Department of Labor, is the initial step toward obtaining a Green Card. This process ensures that the entry of foreign workers does not negatively impact job opportunities, wages, and working conditions for U.S. workers.
Amazon first put a halt to PERM applications in 2023. After reviewing "labor market conditions and immigrant requirements," the company decided to continue this suspension until the end of 2024.
The memo stated, "It was determined that we are unable to continue with PERM filings through 2024."
Amazon has yet to respond to the queries sent by Benzinga.
The recent spate of layoffs at Amazon and other tech companies has made the PERM process more complex, as per Jennifer Gordon, an immigration and labor law professor at Fordham University. These companies now have to demonstrate that the employees who were laid off are not suitable for the jobs meant for foreign workers. They also need to inform those who were laid off in the past six months about job openings before filing PERM applications for foreign workers.
Why It Matters: Earlier this year, Amazon's CFO hinted at possible further layoffs despite the company's financial success. Amazon's CEO, Andy Jassy, also expressed a commitment to cost-cutting while investing in artificial intelligence (AI), indicating the possibility of further job cuts. This move towards AI could impact the workforce as resources are devoted to automation.
According to F. Oliver Yang, a business immigration lawyer, business immigration is crucial for American competitiveness and innovation. He advocates for greater public awareness about the economic benefits of immigrant workers and foreign investors.
Price Action: On Wednesday, Amazon's stock closed at $172.66, a 2.23% decrease from the previous close of $176.59, according to Benzinga Pro.
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