“We have opted to discontinue visa and green card sponsorship for the majority of such roles in IBM Consulting,” an IBM spokesperson said.
IBM Consulting has more than 150,000 workers
IBM Consulting is by far the company's largest division, with more than 150,000 workers, according to IBM's website.
The division had participated in US high-skilled visa programmes to address skill shortages, the spokesperson said. However, participation has been declining for a number of years as skill availability and client needs have changed.
IBM's shares fell about 1% on Tuesday morning following the report.
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Trump administration tightens H-1B rules
The move comes as the Trump administration has stepped up its efforts to reduce companies' reliance on foreign workers.
The technology industry has long relied on foreign workers, making immigration a major point of debate in the US. Since President Donald Trump returned to office last year, his administration has pushed technology companies to train and hire more US workers.
The administration has also moved to make it harder for companies to use H-1B visas to bring in foreign talent. Proposed changes include a $100,000 filing fee for most candidates and changes to the annual H-1B lottery that would give priority to companies offering higher salaries.
Last month, the administration accused Microsoft Corp., Adobe Inc. and a half-dozen other companies of abusing a US worker visa programme and suspended them indefinitely from using it.
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IBM shifts focus towards software
IBM has been reshaping its business in recent years, moving towards becoming a high-growth software company through major acquisitions including Red Hat, HashiCorp and Confluent.
Its consulting business, however, has lagged behind. The division's growth has remained largely flat since 2024.
For employees affected by the latest decision, IBM has said they can continue working for the company outside the US or leave at the end of the year.