Democrats

Senate Dem Report Finds Almost 100 Million Jobs Could Be Lost To AI (thehill.com) 76

An anonymous reader quotes a report from The Hill: A Senate report released (PDF) Monday says AI and automation could replace nearly 100 million jobs across various industries over the next decade. The report, conducted by Democratic staffers on the Senate Health, Education, Labor and Pensions (HELP) Committee, led by Sen. Bernie Sanders (I-Vt.), outlines how AI and automation will impact the American economy and workforce. Sanders, the ranking member on the HELP Committee, has warned of the consequences widespread use of AI and automation can have for workers.

As part of their investigation, staffers asked ChatGPT, OpenAI's chatbot, to predict the impact of AI and automation on certain industries. Of the 20 workforces ChatGPT said would be most affected by the technological rush, 15 will see more than half of their workforces replaced by AI and automation over the next decade. The workforce most impacted will be fast food and counter employees. According to the report, more than 3 million fast food and counter workers will be replaced over the next 10 years, accounting for 89 percent of the workforce.

Other workforces that will be significantly affected include customer service representatives, laborers and freight, stock and material movers and secretaries and executive assistants -- not including legal, medical and executive positions. The report said that 83 percent, 81 percent and 80 percent of those workforces, respectively, will be replaced in the next decade. [...] Sanders, in a Fox News op-ed published Monday, doubled down on the report's findings, saying increased technological capacity risks "dehumanizing" individuals. "We do not simply need a more 'efficient' society," Sanders said. "We need a world where people live healthier, happier and more fulfilling lives."

Media

CBS News Was Just Taken Over By a Substack (theverge.com) 248

Paramount has acquired The Free Press, Bari Weiss's Substack-born media outlet, for $150 million and appointed Weiss as editor-in-chief of CBS News. The move effectively places a conservative-leaning Substack writer at the helm of a legacy news network, following the FCC's approval of the Skydance-Paramount merger, which required CBS to feature a broader "diversity of viewpoints from across the political and ideological spectrum." The Verge reports: Before starting The Free Press, Weiss worked as an op-ed and book review editor at The Wall Street Journal from 2013 to 2017 and later became an op-ed editor and writer at The New York Times to expand the publication's stable of conservative columnists during Donald Trump's first term. She resigned from the NYT in 2020, citing an "illiberal environment."

Weiss started a Substack newsletter in 2021, called Common Sense, which later evolved into The Free Press, touting itself as a media company "built on the ideals that were once the bedrock of great American journalism." As noted in the press release, The Free Press has grown its revenue 82 percent over the past year, while subscribers increased 86 percent to 1.5 million, 170,000 of which are paid subscriptions.

Earth

As Forests Are Cut Down, Butterflies Are Losing Their Colours (theguardian.com) 11

Deforestation is draining color from butterfly populations in Brazil. Researchers studying butterflies in the state of EspÃrito Santo found 31 species in natural forests but only 21 in eucalyptus plantations. The plantation communities were dominated by brown-colored species. Roberto GarcÃa-Roa, part of the research project, said the colors on butterfly wings have been designed over millions of years.

Lead researcher Maider Iglesias-Carrasco from the University of Copenhagen observed a general feeling of emptiness in the plantations. Ricardo Spaniol from the Federal University of Rio Grande do Sul discovered in 2019 that the most colorful Amazonian species often disappear first after deforestation, probably because of the loss of native vegetation and increased exposure to predators. Eucalyptus plantations cover at least 22 million hectares around the world. Spaniol's research found that forested Amazon habitats regenerating for 30 years after use as cattle pasture showed a remarkable increase in butterfly color diversity.
Social Networks

Have We Passed Peak Social Media? (ft.com) 56

Social media usage peaked in 2022 and has been on a steady decline since. An analysis of 250,000 adults across more than 50 countries by the digital audience insights company GWI found that adults aged 16 and older spent an average of two hours and 20 minutes per day on social platforms at the end of 2024. That figure is down almost 10% from 2022. The decline is most pronounced among teenagers and people in their twenties.

Usage has traced a smooth curve upward and then downward over the past decade. This is not simply the unwinding of increased screen time during pandemic lockdowns. The data also captured a shift in how people use these platforms. The share of people who report using social media to stay in touch with friends, express themselves or meet new people has fallen by more than a quarter since 2014.

Opening the apps reflexively to fill spare time has risen. North America is an exception to the global trend. Social media consumption there continues to climb. By 2024 it reached levels 15% higher than Europe. Meta and OpenAI recently announced new social platforms that will be filled with AI-generated short-form videos.
Earth

Frailty in Ageing Populations Worsened By Air Pollution, Global Review Finds (theguardian.com) 8

Air pollution increases the likelihood of people becoming frail in middle and old age, according to an international review of studies. The Guardian: The review team found 10 studies that looked at outdoor air pollution and frailty. The people studied came from 11 countries including China, the UK, Sweden, South Africa and Mexico. Two of the studies showed that men were more vulnerable than woman, with a stronger association between particle pollution and frailty. The risk of frailty increased with outdoor particle pollution. For the UK, this could mean about 10-20% of frailty cases are attributable to air pollution.

Exposure to secondhand smoking was the environmental factor that presented the greatest risk of frailty. The risk of frailty was increased by about 60% for people who breathed other people's smoke at home. Using solid fuels for cooking or home heating also carried an extra risk of frailty. This was about half the risk of living with a smoker, based on studies from six countries.

Technology

Walmart To Deploy Sensors To Track 90 Million Grocery Pallets by Next Year 17

Walmart plans to deploy sensors across its 4,600 US stores by the end of 2026 to track 90 million pallets of groceries shipped annually [Editor's note: non-paywalled source]. The retailer and technology vendor Wiliot announced the expansion Thursday. The sensors will monitor the location, condition and temperature of perishables as they move from warehouses to stores. Walmart started testing Wiliot's sensors at a Texas warehouse in 2023 and has expanded to 500 locations. The full rollout will cover the retailer's US store network and 40 distribution centers.

The microchips measure 0.7 square millimeters and are embedded in shipping labels. They use Bluetooth to transmit real-time data about pallets. Walmart previously relied on manual scanning and paper checks by employees. The Arkansas-based company employs 2.1 million people but increased revenues by $150 billion over five years without adding workers. Walmart accounts for more than a fifth of US grocery sales.
Businesses

Linkedin CEO Says Fancy Degrees Will Matter Less in the Future of Work (businessinsider.com) 53

Top college degrees may no longer provide the edge they once did in the job market, per LinkedIn CEO Ryan Roslansky. "I think the mindset shift is probably the most exciting thing because my guess is that the future of work belongs not anymore to the people that have the fanciest degrees or went to the best colleges, but to the people who are adaptable, forward thinking, ready to learn, and ready to embrace these tools," Roslansky said. "It really kind of opens up the playing field in a way that I think we've never seen before."

A 2024 Microsoft survey found 71% of business leaders would choose less-experienced candidates with AI skills over experienced candidates without them. LinkedIn data showed job postings requiring AI literacy increased about 70% year-over-year. Roslansky said AI will not replace humans but people who embrace AI will replace those who don't.
Space

Prospect of Life On Saturn's Moons Rises After Discovery of Organic Substances (theguardian.com) 48

Scientists have discovered complex organic molecules within the icy plume erupting from Saturn's moon Enceladus, strengthening the case that its hidden saltwater ocean may harbor the conditions for life. The Guardian reports: The sixth largest of Saturn's moons, Enceladus has become one of the leading contenders in the search for bodies that could harbor extraterrestrial life, with the Cassini mission -- which ended in 2017 -- revealing the moon has a plume of water ice grains and vapors erupting from beneath the surface at its south pole. The phenomenon has since been captured by the James Webb space telescope, with the plume reaching nearly 6,000 miles into space. The source of this material is thought to be a saltwater ocean that lies beneath the moon's icy crust.

Now researchers studying data from the Cassini mission say they have discovered organic substances within the plume, with some types of molecule detected there for the first time. Dr Nozair Khawaja, a planetary scientist at Freie University Berlin and lead author of the work, said the results increased the known complexity of the chemistry that is happening below the surface of Enceladus. "When there is complexity happening, that means that the habitable potential of Enceladus is increasing right now," he said. Writing in the journal Nature Astronomy, Khawaja and colleagues reported how their previous work had revealed the presence of organic substances and salts within ice grains found in a ring of Saturn, known as the "E-ring," that is composed of material ejected from Enceladus. [...]

While the new findings do not show that there is life on Enceladus, Khawaja said they indicate there are complex chemical pathways at play that could lead to the formation of substances that could be biologically relevant. The results, he added, support plans by the European Space Agency (ESA) to investigate the moon for signs of life. "I think all the signals are green here for Enceladus," Khawaja said.
The findings add momentum to ESA's proposed mission to directly search for biological signs around 2042. According to the ESA, the mission will consist of an orbiter around Enceladus that will also fly through the plumes, as well as a lander that will touch down in the south pole region of the moon.
Television

Cable Nostalgia Persists As Streaming Gets More Expensive, Fragmented (arstechnica.com) 35

An anonymous reader quotes a report from Ars Technica: TiVo's Q2 2025 Video Trends Report: North America released today points to growth in cord reviving. It reads: "The share of respondents who cut the cord but later decided to resubscribe to a traditional TV service has increased about 10 percent, to 31.9 percent in Q2 2025." TiVo's report is based on a survey conducted by an unspecified third-party survey service in Q2 2025. The respondents are 4,510 people who are at least 18 years old and living in the US or Canada, and the survey defines traditional TV services as pay-TV platforms offering linear television via cable, satellite, or managed IPTV platforms.

It's important to note that TiVo is far from an impartial observer. In addition to selling an IPTV platform, its parent company, Xperi, works with cable, broadband, and pay-TV providers and would directly benefit from the existence or perception of a cord reviving "trend." When reached for comment, a TiVo spokesperson said via email that cord reviving is driven by a "mixture of reasons, with internet bundle costs, familiarity of use, and local content (sports, news, etc.) being the primary drivers." The rep noted that it's "likely" that those re-subscribing to traditional TV services are using them alongside some streaming subscriptions. "It's possible that users are churning off some [streaming] services where there is overlap with traditional TV services," TiVo's spokesperson said.

Science

Jane Goodall, Famed Primatologist and Conservationist, Dies At 91 (go.com) 26

Jane Goodall, world-renowned primatologist, anthropologist, and conservationist, has died at the age of 91 while on a speaking tour in California. The British primatologist's "discoveries as an ethologist revolutionized science, and she was a tireless advocate for the protection and restoration of our natural world," according to the institute she founded. From a report: Goodall was only 26 years old when she first traveled to Tanzania and began her important research on chimpanzees in the wild. Throughout her study of the species, Goodall proved that primates display an array of similar behaviors to humans, such as the ability to develop individual personalities and make and use their own tools. Among the most surprising discoveries Goodall made was "how like us" the chimpanzees are, she told ABC News in 2020.

"Their behavior, with their gestures, kissing, embracing, holding hands and patting on the back," she said. "... The fact that they can actually be violent and brutal and have a kind of war, but also loving an altruistic." That discovery is considered one of the great achievements of 20th-century scholarship, according to the Jane Goodall Institute. [...] Goodall's research garnered both scientific honors and mainstream fame, and she was credited with paving the way for a rise in women pursuing careers in STEM (science, technology, engineering and math) over the years. The number of women in STEM has increased from 7% to 26% in the six last decades, according to The Jane Goodall Institute, which cited census information from 1970 to 2011.

In 1991, she also founded Roots & Shoots, a global humanitarian and environmental program for young people. She was named a United Nations Messenger of Peace in April 2002. The anthropologist continued to lend her voice to environmental causes well into her 80s and 90s. In 2019, Goodall acknowledged the climate crisis and the importance of mitigating further warming, telling ABC News that the planet is "imperiled." "We are definitely at a point where we need to make something happen," she said.

"We are imperiled. We have a window of time. I'm fairly sure we do. But, we've got to take action." Goodall even partnered with Apple in 2022 to encourage customers to recycle their devices to reduce individual carbon footprint and cut down on unnecessary mineral mining around the world. "Yes, people need to make money, but it is possible to make money without destroying the planet," Goodall told ABC News at the time. "We've gone so far in destroying the planet that it's shocking."

AI

Lufthansa To Cut 4,000 Jobs As Airline Turns To AI To Boost Efficiency 32

An anonymous reader quotes a report from CNBC: Lufthansa announced plans to cut 4,000 roles on Monday as it aims to increase profitability and lean on AI to drive efficiency. The airline group said it will eliminate a total of 4,000 FTE, or full-time equivalent, roles worldwide by 2030. The company is targeting primarily admin roles, the majority of which will be affected at its home base in Germany, as part of a broader restructuring strategy.

"The Lufthansa Group is reviewing which activities will no longer be necessary in the future, for example due to duplication of work. In particular, the profound changes brought about by digitalization and the increased use of artificial intelligence will lead to greater efficiency in many areas and processes," the company said in a release issued during its Capital Markets Day in Munich. CEO Sebastian Siemiatkowski said earlier this year that artificial intelligence had partially helped to shrink the company's headcount by 40% down from 5,000 employees to almost 3,000.
Medicine

What Researchers Suspect May Be Fueling Cancer Among Millennials (msn.com) 171

Cancer rates among people aged 15 to 49 have increased 10% since 2000 even as rates have fallen among older populations. Young women face an 83% higher cancer rate than men in the same age range. A 150,000-person study presented at the American Association for Cancer Research meeting found millennials appear to be aging biologically faster than previous generations based on blood biomarkers. That acceleration was associated with up to 42% increased risk for certain cancers including lung, gastrointestinal and uterine malignancies.

Researchers are examining the "exposome" -- the full range of environmental exposures across a person's life. Studies have linked early-onset cancers to medications taken during pregnancy, ultra-processed foods that now account for more than half of daily calorie intake in the United States, circadian rhythm disruption from artificial light and shift work, and chemical exposures. Gary Patti at Washington University is using zebrafish exposed to known and suspected carcinogens to track tumor development. His lab has developed systems to scan blood samples for tens of thousands of chemicals simultaneously to identify signatures appearing more frequently in early-onset cancer patients.
Power

California Now Has 68% More EV Chargers Than Gas Nozzles, Continues Green Energy Push (electrek.co) 278

Six months ago California had 48% more public and "shared" private EV chargers than gasoline nozzles. (In March California had 178,000 public and shared private EV chargers, versus about 120,000 gas nozzles.)

Since then they've added 23,000 more public/shared charging ports — and announced this week that there's now 68% more EV charger ports than the number of gasoline nozzles statewide. "Thanks to the state's ever-expanding charger network, 94% of Californians live within 10 minutes of an EV charger," according to the announcement from the state's energy policy agency. And the California Energy Commission staff told CleanTechnica they expect more chargers in the future. "We are watching increased private investment by consortiums like IONNA and OEMs like Rivian, Ford, and others that are actively installing EV charging stations throughout the state."

Clean Technica notes in 2019, the state had roughly 42,000 charging ports and now there are a little over 200,000. (And today there's about 800,000 home EV chargers.)

This week California announced another milestone: that in 2024 nearly 23% of all the state's new truck sales — that's trucks, buses, and vans — were zero-emission vehicles. (The state subsidizes electric trucks — $200 million was requested on the program's first day.) Greenhouse gas emissions in California are down 20% since 2000 — even as the state's GDP increased 78% in that same time period all while becoming the world's fourth largest economy.

The state also continues to set clean energy records. California was powered by two-thirds clean energy in 2023, the latest year for which data is available — the largest economy in the world to achieve this level of clean energy. The state has run on 100% clean electricity for some part of the day almost every day this year.

"Last year, California ran on 100% clean electricity for the equivalent of 51 days," notes another announcement, which points out California has 15,763 MW of battery storage capacity — roughly a third of the amount projected to be needed by 2045.
AI

Mistral's New Plan for Improving Its AI Models: Training Data from Enterprises (wsj.com) 11

Paris-based AI giant Mistral "is pushing to improve its models," reports the Wall Street Journal, "by looking inside legacy enterprises that hold some of the world's last untapped data reserves...." Mistral's approach will be to form partnerships with enterprises to further train existing models on their own proprietary data, a phenomenon known as post-training... [At Dutch chip-equipment company ASML], Mistral embeds its own solutions architects, applied AI engineers and applied scientists into the enterprise to work on improving models with the company's data. [While Mistral sells some models under a commercial license], this co-creation strategy allows Mistral to make money off the services side of its business and afford to give away its open source AI free of charge, while improving model performance for the customer with more industry context...

This kind of hand-holding approach is necessary for most companies to tackle AI successfully, said Arthur Mensch [co-founder and chief executive of Mistral]. "The very high-tech companies [and] a couple of banks are able to do it on their own. But when it comes to getting some [return on investment] from use cases, in general, they fail," he said. Mensch attributes that in part to a mismatch between expectations and reality. "The curse of AI is that it looks like magic. So you can very quickly make something that looks amazing to your boss," but it doesn't scale or work more broadly, he said. In other cases, enterprises simply might not know what to focus on. For example, it is a mistake to think equipping all employees with a chatbot will create meaningful gains on the bottom line, he said. Mensch said to fully take advantage of AI, companies will have to rethink organizational structures. With information flowing more easily, they could require fewer middle managers, for example.

There is a lot of work yet to do, Mensch said, but in a large sense, the future of AI development now lies inside the enterprise itself. "This is a pattern that we've seen with many of our customers: At some point, the capabilities of the frontier model can only be increased if we partner," he said.

Desktops (Apple)

Apple Mac Adoption Is Accelerating Across US Enterprises 54

MacStadium's inaugural CIO survey shows Apple devices gaining major ground in U.S. enterprises, with 96% of CIOs expecting Mac fleets to expand in the next two years and Macs already representing an average of 65% of enterprise endpoints. "The results show rapid Mac deployment across US business in the last two years, with 93% of CIOs claiming increased use, and 59% claiming a significant increase in use of all Apple devices," adds Computerworld. From the report: "As the adoption of Apple hardware continues to rise with both consumers and business users, and Apple Silicon is emerging as a secure and energy-efficient option for AI workloads, Apple is turning its sights to the enterprise," [MacStadium CEO Ken Tacelli] said in an interview. Among the specifics:

- 93% of CIOs report increased Apple device usage over the past two years.
- 45% of CIOs describe their leadership's view of Macs as a strategic investment, reflecting growing executive-level buy-in.
- The top drivers for Apple adoption are security and privacy (59%), employee preference (59%), and hardware performance (54%).
- Perhaps most importantly, 65% of CIOs say Macs are easier to manage than Windows or Linux devices.

In addition to those factors, the unique technical capabilities of Apple's kit (53%) play a role. Businesses are buying Macs because they're cheaper to run, last longer, allow employees to be more productive, and are both more private and more secure. The survey also shows that AI has become a leading reason to choose Macs. Apple Silicon is highly performant and energy efficient, enabling Macs to run on-device, secure AI, and to access cloud-based AI services.
Oracle

Disastrous Oracle Implementation At Europe's Largest City Council. (theregister.com) 133

Longtime Slashdot reader whoever57 writes: Birmingham City Council, the largest such entity in Europe, has been declared effectively bankrupt. There are a couple of reasons for this, but one of them is a disastrous project to replace the city's income management system using Oracle. The cost of this has risen to $230 million, while the initial estimate was $24 million. There was a failed rollout of the new system earlier this year. "Original plans for the replacement of SAP with Oracle Fusion set aside a 19.965 million-euro budget for three years implementation until the end of the 2021 financial year," reports The Register. "Go-live date was later put back until April 2022 and the budget increased to 40 million euros. After the council realized it would need to reimplement all of Oracle, the budget for running the old system and introducing the new one increased to 131 million euros."

"In a hastily convened Audit Committee meeting this week, councilor heard how that date has now been put back until November, expressing their anger that the news hit the media before they were told." Testing failed with only a 73.3% pass rate and 10 severe deficits, "below the acceptance criteria of a 95 percent pass rate and zero severe deficits.
Science

Experimental Gene Therapy Found To Slow Huntington's Disease Progression (bbc.com) 13

Doctors report the first successful treatment for Huntington's disease using a new type of gene therapy given during 12 to 18 hours of delicate brain surgery. The BBC reports: An emotional research team became tearful as they described how data shows the disease was slowed by 75% in patients. It means the decline you would normally expect in one year would take four years after treatment, giving patients decades of "good quality life", Prof Sarah Tabrizi told BBC News. The first symptoms of Huntington's disease tend to appear in your 30s or 40s and is normally fatal within two decades -- opening the possibility that earlier treatment could prevent symptoms from ever emerging. None of the patients who have been treated are being identified, but one was medically retired and has returned to work. Others in the trial are still walking despite being expected to need a wheelchair. Treatment is likely to be very expensive. However, this is a moment of real hope in a disease that hits people in their prime and devastates families. [...]

It starts with a safe virus that has been altered to contain a specially designed sequence of DNA. This is infused deep into the brain using real-time MRI scanning to guide a microcatheter to two brain regions - the caudate nucleus and the putamen. This takes 12 to 18 hours of neurosurgery. The virus then acts like a microscopic postman -- delivering the new piece of DNA inside brain cells, where it becomes active. This turns the neurons into a factory for making the therapy to avert their own death. The cells produce a small fragment of genetic material (called microRNA) that is designed to intercept and disable the instructions (called messenger RNA) being sent from the cells' DNA for building mutant huntingtin. This results in lower levels of mutant huntingtin in the brain. [...]

The data showed that three years after surgery there was an average 75% slowing of the disease based on a measure which combines cognition, motor function and the ability to manage in daily life. The data also shows the treatment is saving brain cells. Levels of neurofilaments in spinal fluid -- a clear sign of brain cells dying -- should have increased by a third if the disease continued to progress, but was actually lower than at the start of the trial.

Windows

Microsoft Offers No-Cost Windows 10 Lifeline (straitstimes.com) 43

Microsoft on Sept 24 announced new options for US and European customers to safely extend the life of the Windows 10 operating system free of charge just days before a key deadline to upgrade to Windows 11. From a report: The US tech giant plans to end support for Windows 10 on Oct 14, a move that has drawn criticism from consumer advocacy groups and sparked concerns among users who fear they will need to purchase new computers to stay protected from cyber threats.

Users who are unable to upgrade or choose to forgo the extended security updates will face increased vulnerability to cyberattacks. In response to these concerns, Microsoft informed European users that essential security updates will be extended for one year at no additional cost, provided they log in with a Microsoft account. Previously, the company had offered a one-year extension of Windows 10 security updates for $30 to users whose hardware is incompatible with Windows 11. In the US, a similar free option will allow users to upload their Windows 10 profiles to Microsoft's backup service and receive security updates for up to one year.

Security

Jaguar Land Rover Hack 'Has Cost 30,000 Cars and Threatens Supply Chain' (thetimes.com) 92

Jaguar Land Rover has halted production for nearly a month following a major cyberattack, costing an estimated 30,000 vehicles and billions in lost revenue. "The company said on Tuesday that production would be halted for another week until at least October 1, which increased concerns that a full return to production could be months away," reports The Times. From the report: David Bailey, professor of business economics at Birmingham University, said the JLR statement did not commit to reopening production on October 1 and even if it did "it's not going to be back to normal, but phased production start with some lines opening before others, as we saw after the Covid closure back in 2020." He said: "It's 24 days [shutdown] as of September 24. So that is roughly 1,000 cars a day, 24,000 cars not produced. So by then, that's about 1.7 billion pounds in lost revenue. By October 1, it will be a hit to revenue of something like 2.2 billion pounds. It's pretty massive. JLR can get through, but they're going to be burning through cash this month."

Bailey also raised concerns that smaller companies further down the supply chain lacked the cash reserves to withstand the shutdown. The company directly employs more than 30,000 people, and it is estimated that approximately 200,000 workers in the supply chain depend on work from JLR. "The union has said that in some cases, staff have been told to go and apply for universal credit. There are firms I know that have applied for bank loans to keep going. But even then, you know they're approaching the limit of what they do. There's an added knock-on effect that some of the suppliers also supply other car assemblers, Toyota or Mini. So some of those are concerned that bits of the supply chain may go under and affect them as well, because the industry is so connected. One way or another, the government's going to take a hit. Either through some sort of emergency support, whether that's furlough or emergency short-term loans or through unemployment benefit, if this carries on."

There has been uncertainty over the extent of the cyberattack and exactly how the company has been affected, as well as who is responsible for it. According to one source, some JLR staff were still unable last week to access the Slack messaging system through the company's "one sign on" system. The JLR statement added: "We have made this decision to give clarity for the coming week as we build the timeline for the phased restart of our operations and continue our investigation."

United States

JPMorgan Says $100K 'Prices Out H-1B' as Indian IT Giants May Accelerate Offshoring With Remote Delivery Already Proven at Scale (indiadispatch.com) 125

The US will charge companies $100,000 for each new H-1B visa starting February 2026 under Project Firewall. According to a new analysis, the fee exceeds average H-1B salaries at firms like TCS where engineers earn $105,000 annually. Previous visa costs ranged from $2,000 to $33,000. Indians hold an estimated 70% of H-1B visas. The fee eliminates five to six years of profit per engineer. Typical engineers deployed to American client sites generate $150,000 to $200,000 in annual billings at 10% operating margins, producing $15,000 to $20,000 in yearly profit. J.P. Morgan states the move "prices out the utility of H-1B as a source of labor supply." But it might not be bad for the IT giants.

Major Indian IT firms derive only 0.2% to 2.2% of their workforce from H-1B approvals after years of reducing visa dependence, according to India Dispatch. New approvals alone account for under 0.4% of headcount. Morgan Stanley estimates companies could offset 60% of the financial impact through increased offshoring and selective price increases. The net damage to operating profit would stay contained at around 50 basis points or a 3% to 4% hit to earnings spread across the renewal cycle. Companies plan to accelerate geographic arbitrage by routing more work to India, Canada, and Latin America. Firms can maintain their existing visa holder base while letting normal turnover occur over three to six years.

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