Intel&nbsp;said on Thursday (Aug 1) it would cut more than 15 per cent of its workforce, some 17,500 people, and suspend its dividend starting in the fourth quarter as the chipmaker pursues a turnaround focused on its money-losing manufacturing business.

It also forecast third-quarter revenue below market estimates, grappling with a pullback in spending on traditional data centre semiconductors and a focus on AI chips, where it lags behind rivals.

Shares of Santa Clara, California-based&nbsp;Intel&nbsp;slumped 20 per cent in extended trade, setting the chipmaker up to lose more than $24 billion in market value. The stock had closed down seven per cent on Thursday, in tandem with a plunge in US chip stocks after a conservative forecast from Arm Holdings on Wednesday.

The results did not rock the broader chip industry.

AI powerhouse Nvidia and smaller rival AMD ticked up after hours, underscoring how well-positioned they were to take advantage of the AI boom, and&nbsp;Intel's relative disadvantage.

"I need less people at headquarters, more people in the field, supporting customers," CEO Pat Gelsinger told Reuters in an interview, talking about the job cuts. On the dividend suspension, he said: "Our objective is to ... pay a competitive dividend over time, but right now, focusing on the balance sheet, deleveraging."

Intel, which employed 116,500 people as of June 29, excluding some subsidiaries, said the majority of the job cuts would be completed by the end of 2024. In April, it declared a quarterly dividend of 12.5 cents per share.

Intel&nbsp;is in the middle of a turnaround plan, focused on developing advanced AI processors and building-out its for-hire manufacturing capabilities, as it aims to recoup the technological edge it lost to Taiwan's TSMC, the world's largest contract chipmaker.

The push to energize that contracting foundry business under Gelsinger has increased&nbsp;Intel's costs and pressured profit margins. More recently, the chipmaker has said it will cut costs.

On Thursday,&nbsp;Intel&nbsp;announced it would cut operating expenses and reduce capital expenditure by more than $10 billion in 2025, more than it initially planned.

"A $10 billion cost reduction plan shows that management is willing to take strong and drastic measures to right the ship and fix problems. But we are all asking, 'is it enough' and is it a bit of a late reaction considering that CEO Gelsinger has been at the helm for over three years?" said Michael Schulman, chief investment officer of Running Point Capital.

The company had cash and cash equivalents of $11.29 billion, and total current liabilities of about $32 billion, as of June 29.

Intel's lagging position in the market for AI chips has sent its shares down more than 40 per cent so far this year.

For the third quarter,&nbsp;Intel&nbsp;expects revenue of $12.5 billion to $13.5 billion, compared with analysts' average estimate of $14.35 billion, LSEG data showed. It forecast adjusted gross margin of 38 per cent, well short of market expectations of 45.7 per cent.

Watch |&nbsp;Intel restructures its manufacturing business

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<h2>Cutting capex</h2>

Analysts believe&nbsp;Intel's plan to turn around the foundry business will take years to materialize and expect TSMC to maintain its lead in the coming years, even as&nbsp;Intel&nbsp;has ramped up production of AI chips for personal computers.

The PC chip business grew nine per cent in the April-June quarter.

"The irony is that their first AI PC-focused processors are selling much better than expected. The problem is that the costs for those chips are much higher, meaning their profitability on them isn't great," said Bob O'Donnell, chief analyst at TECHnalysis Research.

"In addition, the data centre decline reinforces the fact that while companies are buying lots of infrastructure for AI, the vast majority is for non-Intel&nbsp;GPUs," he said, referring to graphic processing units like those sold by Nvidia.

Intel's data centre business declined three per cent in the quarter.

<a href="https://www.wionews.com/business-economy/wion-business-wrap-intels-plan-to-overtake-tsmc-struggles-of-us-natural-gas-producers-and-more-692651">Also read |&nbsp;WION Business Wrap | Intel’s plan to overtake TSMC, Struggles of US natural gas producers and more</a>

CFO David Zinsner said on a post-earnings call that the chipmaker expects weaker consumer and enterprise spending in the current quarter, especially in China.

Export licenses that were revoked in May also hurt&nbsp;Intel's business in China in the second quarter, he said.&nbsp;Intel&nbsp;said in May its sales there would take a hit after Washington revoked some of the chipmaker's export licenses for a customer in China.

Intel&nbsp;is also slashing investments.

It expects to cut capital expenses by 17 per cent in 2025 year-on-year to $21.5 billion, calculated on the midpoint of a range the chipmaker forecast. It expects these costs to stay roughly flat in 2024.

Intel said on Thursday (Aug 1) it would cut more than 15 per cent of its workforce, some 17,500 people, and suspend its dividend starting in the fourth quarter as the chipmaker pursues a turnaround focused on its money-losing manufacturing business.

Intel said on Thursday (Aug 1) it would cut more than 15 per cent of its workforce, some 17,500 people, and suspend its dividend starting in the fourth quarter as the chipmaker pursues a turnaround focused on its money-losing manufacturing business. It also forecast third-quarter revenue below market estimates, grappling with a pullback in spending on traditional data centre semiconductors and a focus on AI chips, where it lags behind rivals. Shares of Santa Clara, California-based Intel slumped 20 per cent in extended trade, setting the chipmaker up to lose more than $24 billion in market value. The stock had closed down seven per cent on Thursday, in tandem with a plunge in US chip stocks after a conservative forecast from Arm Holdings on Wednesday. The results did not rock the broader chip industry. AI powerhouse Nvidia and smaller rival AMD ticked up after hours, underscoring how well-positioned they were to take advantage of the AI boom, and Intel's relative disadvantage. "I need less people at headquarters, more people in the field, supporting customers," CEO Pat Gelsinger told Reuters in an interview, talking about the job cuts. On the dividend suspension, he said: "Our objective is to ... pay a competitive dividend over time, but right now, focusing on the balance sheet, deleveraging." Intel, which employed 116,500 people as of June 29, excluding some subsidiaries, said the majority of the job cuts would be completed by the end of 2024. In April, it declared a quarterly dividend of 12.5 cents per share. Intel is in the middle of a turnaround plan, focused on developing advanced AI processors and building-out its for-hire manufacturing capabilities, as it aims to recoup the technological edge it lost to Taiwan's TSMC, the world's largest contract chipmaker. The push to energize that contracting foundry business under Gelsinger has increased Intel's costs and pressured profit margins. More recently, the chipmaker has said it will cut costs. On Thursday, Intel announced it would cut operating expenses and reduce capital expenditure by more than $10 billion in 2025, more than it initially planned. "A $10 billion cost reduction plan shows that management is willing to take strong and drastic measures to right the ship and fix problems. But we are all asking, 'is it enough' and is it a bit of a late reaction considering that CEO Gelsinger has been at the helm for over three years?" said Michael Schulman, chief investment officer of Running Point Capital. The company had cash and cash equivalents of $11.29 billion, and total current liabilities of about $32 billion, as of June 29. Intel's lagging position in the market for AI chips has sent its shares down more than 40 per cent so far this year. For the third quarter, Intel expects revenue of $12.5 billion to $13.5 billion, compared with analysts' average estimate of $14.35 billion, LSEG data showed. It forecast adjusted gross margin of 38 per cent, well short of market expectations of 45.7 per cent. Watch | Intel restructures its manufacturing business × Cutting capex Analysts believe Intel's plan to turn around the foundry business will take years to materialize and expect TSMC to maintain its lead in the coming years, even as Intel has ramped up production of AI chips for personal computers. The PC chip business grew nine per cent in the April-June quarter. "The irony is that their first AI PC-focused processors are selling much better than expected. The problem is that the costs for those chips are much higher, meaning their profitability on them isn't great," said Bob O'Donnell, chief analyst at TECHnalysis Research. "In addition, the data centre decline reinforces the fact that while companies are buying lots of infrastructure for AI, the vast majority is for non-Intel GPUs," he said, referring to graphic processing units like those sold by Nvidia. Intel's data centre business declined three per cent in the quarter. Also read | WION Business Wrap | Intel’s plan to overtake TSMC, Struggles of US natural gas producers and more CFO David Zinsner said on a post-earnings call that the chipmaker expects weaker consumer and enterprise spending in the current quarter, especially in China. Export licenses that were revoked in May also hurt Intel's business in China in the second quarter, he said. Intel said in May its sales there would take a hit after Washington revoked some of the chipmaker's export licenses for a customer in China. Intel is also slashing investments. It expects to cut capital expenses by 17 per cent in 2025 year-on-year to $21.5 billion, calculated on the midpoint of a range the chipmaker forecast. It expects these costs to stay roughly flat in 2024.

Intel to fire over 17,000 employees, suspend dividend as growth stalls

Russian&nbsp;government&nbsp;websites&nbsp;are&nbsp;facing&nbsp;unprecedented&nbsp;cyber&nbsp;attacks&nbsp;and technical efforts are being made to filter foreign web traffic, the TASS news agency cited the digital ministry as saying on Thursday.

Russian&nbsp;government&nbsp;entities and state-owned companies have been targeted over events in Ukraine, with the websites&nbsp;of the Kremlin, flagship carrier Aeroflot and major lender Sberbank among those to have seen outages or temporary access issues in recent weeks.

Also read |<a href="https://www.wionews.com/world/russia-condemns-us-president-biden-for-calling-putin-war-criminal-463022">&nbsp;Russia condemns US President Biden for calling Putin 'war criminal'</a>

The ministry was working to adjust to the new conditions, it said, as&nbsp;cyber&nbsp;attacks&nbsp;ratchet up.

"If previously their power at peak moments reached 500 gigabytes, then now it is at 1 terabyte," the ministry said. "That is two to three times more powerful than the most serious incidents of this kind that have been previously&nbsp;reported."

As Russia becomes increasingly isolated from global financial systems and supply chains, the&nbsp;government&nbsp;has proposed a raft of measures to support the IT sector, among others.

Also read |&nbsp;<a href="https://www.wionews.com/world/panama-says-three-ships-hit-by-russian-missiles-in-black-sea-since-start-of-ukraine-invasion-463051">Panama says three ships hit by Russian missiles in Black Sea since start of Ukraine invasion</a>

Technology firms will have access to preferential tax and lending conditions and the digital ministry has previously suggested&nbsp;Russian&nbsp;IT companies discuss a phased transfer of technical support components with foreign firms.

Citing draft&nbsp;government&nbsp;documents, Interfax&nbsp;reported late on Wednesday that the digital ministry had proposed allocating 14 billion roubles ($134.30 million) to support IT companies in the form of grants.

Russian government websites are facing unprecedented cyber attacks and technical efforts are being made to filter foreign web traffic, the TASS news agency cited the digital ministry as saying on Thursday.

Russian government websites are facing unprecedented cyber attacks and technical efforts are being made to filter foreign web traffic, the TASS news agency cited the digital ministry as saying on Thursday. Russian government entities and state-owned companies have been targeted over events in Ukraine, with the websites of the Kremlin, flagship carrier Aeroflot and major lender Sberbank among those to have seen outages or temporary access issues in recent weeks. Also read | Russia condemns US President Biden for calling Putin 'war criminal' The ministry was working to adjust to the new conditions, it said, as cyber attacks ratchet up. "If previously their power at peak moments reached 500 gigabytes, then now it is at 1 terabyte," the ministry said. "That is two to three times more powerful than the most serious incidents of this kind that have been previously reported." As Russia becomes increasingly isolated from global financial systems and supply chains, the government has proposed a raft of measures to support the IT sector, among others. Also read | Panama says three ships hit by Russian missiles in Black Sea since start of Ukraine invasion Technology firms will have access to preferential tax and lending conditions and the digital ministry has previously suggested Russian IT companies discuss a phased transfer of technical support components with foreign firms. Citing draft government documents, Interfax reported late on Wednesday that the digital ministry had proposed allocating 14 billion roubles ($134.30 million) to support IT companies in the form of grants.

Russian government sites facing unprecedented cyber attacks: Report

The Tamil Nadu Government has issued an order permitting shops and establishments to remain open for 24 hours, all days of the year. Prior to the passing of this order, only certain establishments such as &nbsp;IT companies, hospitals, pharmacies and factories could stay open all day and all year.&nbsp;

The order comes as a boon to Shopkeepers and traders associations that had been urging the government to permit 24-hour operations.

Ravi, president of Chennai hotel association said that he viewed this development in a positive light for the hoteliers and traders alike.&nbsp;

''For over 20 years we have been fighting to get this permission and a case was also filed in the Madras High Court, as some shopkeepers are asked to shut their shops by the police after 10pm. Henceforth, there will be an increase in our income and we will make necessary arrangements for additional staff, night shift to provide freshly cooked food and refreshments in the wee hours as well,'' Ravi added.

However, this order is for a period of three years and could undergo changes and also has clauses on increasing protection for women workers. The conditions also state that every employee shall be given one day holiday in a week, employees should be provided with restrooms, washroom, safety lockers and other basic amenities.

To enhance women’s safety it is stated that women employees shall not be required to work beyond 8pm on any day in normal circumstances. Provided that the employer after obtaining the written consent of a woman employee shall allow her to work between 8pm and 6am subject to providing adequate protection of her dignity, honour and safety.&nbsp;

It also mentions that, ''Transport arrangements shall be provided to the woman employee who works in shifts. A notice to this effect shall be exhibited at the main entrance of the establishment indicating the availability of transport.''

The announcement was met with equal enthusiasm from the employees working late hours, night-shifts and those that prefer to venture out for a late-night meal.

''It will definitely be very helpful for IT employees, when we get back home very late we can’t go cook and we only look at restaurants. Hereafter, we don’t have to restrict ourselves to the handful that are open,'' said J Sowmya, a techie. Maybe those that work in the wee hours can take a break and step out for a meal. It also feels safer while walking on the roads late in the night, when shops are open and there’s a considerable crowd.&nbsp;

With eateries and restaurants all set to benefit from the increased revenues from longer hours, the government can cheer about better productivity and higher tax revenues, while customers also have a reason to relish as they could grab their favourite meal or urgent groceries at a time of their choosing.

The Tamil Nadu Government has issued an order permitting shops and establishments to remain open for 24 hours, all days of the year. Prior to the passing of this order, only certain establishments such as IT companies, hospitals, pharmacies and factories could stay open all day and all year.

The Tamil Nadu Government has issued an order permitting shops and establishments to remain open for 24 hours, all days of the year. Prior to the passing of this order, only certain establishments such as IT companies, hospitals, pharmacies and factories could stay open all day and all year. The order comes as a boon to Shopkeepers and traders associations that had been urging the government to permit 24-hour operations. Ravi, president of Chennai hotel association said that he viewed this development in a positive light for the hoteliers and traders alike. ''For over 20 years we have been fighting to get this permission and a case was also filed in the Madras High Court, as some shopkeepers are asked to shut their shops by the police after 10pm. Henceforth, there will be an increase in our income and we will make necessary arrangements for additional staff, night shift to provide freshly cooked food and refreshments in the wee hours as well,'' Ravi added. However, this order is for a period of three years and could undergo changes and also has clauses on increasing protection for women workers. The conditions also state that every employee shall be given one day holiday in a week, employees should be provided with restrooms, washroom, safety lockers and other basic amenities. To enhance women’s safety it is stated that women employees shall not be required to work beyond 8pm on any day in normal circumstances. Provided that the employer after obtaining the written consent of a woman employee shall allow her to work between 8pm and 6am subject to providing adequate protection of her dignity, honour and safety. It also mentions that, ''Transport arrangements shall be provided to the woman employee who works in shifts. A notice to this effect shall be exhibited at the main entrance of the establishment indicating the availability of transport.'' The announcement was met with equal enthusiasm from the employees working late hours, night-shifts and those that prefer to venture out for a late-night meal. ''It will definitely be very helpful for IT employees, when we get back home very late we can’t go cook and we only look at restaurants. Hereafter, we don’t have to restrict ourselves to the handful that are open,'' said J Sowmya, a techie. Maybe those that work in the wee hours can take a break and step out for a meal. It also feels safer while walking on the roads late in the night, when shops are open and there’s a considerable crowd. With eateries and restaurants all set to benefit from the increased revenues from longer hours, the government can cheer about better productivity and higher tax revenues, while customers also have a reason to relish as they could grab their favourite meal or urgent groceries at a time of their choosing.

Now shops and establishments can remain open 24x7 in Tamil Nadu, all-year round

Claiming that there has been a "dramatic increase" in the number of H-1B visas being held up, a coalition of American employers representing top IT companies like Google, Facebook and Microsoft have alleged that the US Citizenship and Immigration Services (USCIS) is acting outside of its own regulations.

The &nbsp;H-1B visa is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise.&nbsp;

The technology companies depend on it to hire tens of thousands of employees each year from countries like India and China.

"We have observed three changes in H-1B adjudication practices under the current administration that seem to permeate most of the increased H-1B adjudication inconsistencies experienced by employers," Compete America said in a letter to the Secretary of Homeland Security Kirstjen Nielsen and Francis Cissna Director, USCIS.

Expressing concerns over legal issues regarding the recent changes in adjudication standards for H-1B non-immigrant visa petitions at USCIS, the coalition -- Compete America -- said the agency's current approach to H-1B adjudications cannot be anticipated by either the statutory or regulatory text.

This leaves employers with a disruptive lack of clarity about the agency's practices, procedures, and policies.&nbsp;

This lack of certainty and consistency wreaks havoc among the nation's employers which are hiring high-skilled Americans and foreign-born professionals, it said in the letter dated November 1.&nbsp;

Compete America alleged that the agency appears to be acting "outside of its own regulations and the controlling statute" by requiring petitioners to comply with the agency's current view that a comparatively entry-level job, and corresponding wage level, cannot be a specialty occupation.

The specific field of study requirement for a specialty occupation means the job must necessitate completion of a single major or qualifying degree, and the requirement for an occupation to usually carry a degree prerequisite means a degree must always be needed.

In its letter, Compete America said that its members have reported dramatic increases in the issuance of Requests for Evidence (RFEs) and denials regarding H-1B petitions for the last 18 months.

More recently they are experiencing a sharp increase in the issuance of Notices of Intent to Deny (NOIDs) and Notices of Intent to Revoke (NOIRs) concerning H-1B petitions.

"These reported shifts in agency action have been perplexing to our coalition's members, especially because the agency's changes in approach were unannounced and unexplained and are not previewed in the regulations governing a qualifying H-1B specialty occupation that have been in effect since 1991," it said.

According to Compete America, USCIS has been denying H-1B petitions exclusively because an entry-level wage is applicable for the specific position, even though the occupation itself is clearly a specialty occupation.&nbsp;

"Nothing in the statute or regulations contemplates or suggests, much less states, that USCIS could ever take the position that it per se excludes or disfavours entry-level jobs in an occupation, or young professionals working in jobs in an occupation, as qualifying for H-1B specialty occupation approval," it asserted.

Further, employers have reported repeated instances of USCIS denying an H-1B petition on the basis that the degree held by the sponsored foreign professional is not within a single field of acceptable study for an occupation.

Employers are also reporting repeated instances of USCIS denying H-1B petitions for occupations that may have some limited instances of jobs where a bachelor's degree or higher is not required, even when those occupations normally do require that level of education for the majority of roles, as contemplated by the statute, Compete America said.&nbsp;

Claiming that there has been a "dramatic increase" in the number of H-1B visas being held up, a coalition of American employers representing top IT companies like Google, Facebook and Microsoft have alleged that the US Citizenship and Immigration Services (USCIS) is acting outside of its own regulations.

Claiming that there has been a "dramatic increase" in the number of H-1B visas being held up, a coalition of American employers representing top IT companies like Google, Facebook and Microsoft have alleged that the US Citizenship and Immigration Services (USCIS) is acting outside of its own regulations. The H-1B visa is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise. The technology companies depend on it to hire tens of thousands of employees each year from countries like India and China. "We have observed three changes in H-1B adjudication practices under the current administration that seem to permeate most of the increased H-1B adjudication inconsistencies experienced by employers," Compete America said in a letter to the Secretary of Homeland Security Kirstjen Nielsen and Francis Cissna Director, USCIS. Expressing concerns over legal issues regarding the recent changes in adjudication standards for H-1B non-immigrant visa petitions at USCIS, the coalition -- Compete America -- said the agency's current approach to H-1B adjudications cannot be anticipated by either the statutory or regulatory text. This leaves employers with a disruptive lack of clarity about the agency's practices, procedures, and policies. This lack of certainty and consistency wreaks havoc among the nation's employers which are hiring high-skilled Americans and foreign-born professionals, it said in the letter dated November 1. Compete America alleged that the agency appears to be acting "outside of its own regulations and the controlling statute" by requiring petitioners to comply with the agency's current view that a comparatively entry-level job, and corresponding wage level, cannot be a specialty occupation. The specific field of study requirement for a specialty occupation means the job must necessitate completion of a single major or qualifying degree, and the requirement for an occupation to usually carry a degree prerequisite means a degree must always be needed. In its letter, Compete America said that its members have reported dramatic increases in the issuance of Requests for Evidence (RFEs) and denials regarding H-1B petitions for the last 18 months. More recently they are experiencing a sharp increase in the issuance of Notices of Intent to Deny (NOIDs) and Notices of Intent to Revoke (NOIRs) concerning H-1B petitions. "These reported shifts in agency action have been perplexing to our coalition's members, especially because the agency's changes in approach were unannounced and unexplained and are not previewed in the regulations governing a qualifying H-1B specialty occupation that have been in effect since 1991," it said. According to Compete America, USCIS has been denying H-1B petitions exclusively because an entry-level wage is applicable for the specific position, even though the occupation itself is clearly a specialty occupation. "Nothing in the statute or regulations contemplates or suggests, much less states, that USCIS could ever take the position that it per se excludes or disfavours entry-level jobs in an occupation, or young professionals working in jobs in an occupation, as qualifying for H-1B specialty occupation approval," it asserted. Further, employers have reported repeated instances of USCIS denying an H-1B petition on the basis that the degree held by the sponsored foreign professional is not within a single field of acceptable study for an occupation. Employers are also reporting repeated instances of USCIS denying H-1B petitions for occupations that may have some limited instances of jobs where a bachelor's degree or higher is not required, even when those occupations normally do require that level of education for the majority of roles, as contemplated by the statute, Compete America said.

'Dramatic increase' in number of H-1B visas being held up, claims Compete America

An IT advocacy group representing more than 1,000 small IT companies mostly run by Indian-Americans has filed a lawsuit against the US immigration agency for issuing H-1B visas for shorter than three years duration.

The H1B visa is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise. The technology companies depend on it to hire tens of thousands of employees each year from countries like India and China.&nbsp;

These visas are typically issued for three to six years to employers to hire a foreign worker.&nbsp;

Based out of Dallas in Texas, the ITServe Alliance in its 43-page lawsuit filed last week alleged that the US Citizenship and Immigration Services has recently begun a practice of approving H-1B petitions for shorter than three years duration.

"These petitions are often valid for only months or days at a time, and some cases are expired by the time the approval is received," it said.

ITServe lawsuit against the USCIS alleges that the agency has no authority to misinterpret the existing regulations and shorten the approval durations.

In fact, the United States Congress has specifically granted power to the Department of Labor and DOL's regulations grant three-year approvals, the lawsuit said.

The lawsuit also alleges that the itinerary requirement put forth by the USCIS is also unlawful.

This is the second lawsuit filed by ITServe against USCIS. In the first lawsuit filed in July 2018, ITServe demanded USCIS to remove language from their website prohibiting F-1 STEM OPT students working at the third part client locations.

"The USCIS has been making arbitrary rules and memos for over eight years, it's our top priority to set things right and hold USCIS accountable to follow the regulations set by the United States Congress," said ITServe's national president for 2018, Gopi Kandukuri.

Referring to the recent spate of H-1B denials that ITServe members received, Kandukuri added members of ITServe Alliance are tired of receiving random denials for no reason.&nbsp;

"The new battlefield for us is the federal courthouse and not USCIS service centers,&nbsp;he said.

An IT advocacy group representing more than 1,000 small IT companies mostly run by Indian-Americans has filed a lawsuit against the US immigration agency for issuing H-1B visas for shorter than three years duration.

An IT advocacy group representing more than 1,000 small IT companies mostly run by Indian-Americans has filed a lawsuit against the US immigration agency for issuing H-1B visas for shorter than three years duration. The H1B visa is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise. The technology companies depend on it to hire tens of thousands of employees each year from countries like India and China. These visas are typically issued for three to six years to employers to hire a foreign worker. Based out of Dallas in Texas, the ITServe Alliance in its 43-page lawsuit filed last week alleged that the US Citizenship and Immigration Services has recently begun a practice of approving H-1B petitions for shorter than three years duration. "These petitions are often valid for only months or days at a time, and some cases are expired by the time the approval is received," it said. ITServe lawsuit against the USCIS alleges that the agency has no authority to misinterpret the existing regulations and shorten the approval durations. In fact, the United States Congress has specifically granted power to the Department of Labor and DOL's regulations grant three-year approvals, the lawsuit said. The lawsuit also alleges that the itinerary requirement put forth by the USCIS is also unlawful. This is the second lawsuit filed by ITServe against USCIS. In the first lawsuit filed in July 2018, ITServe demanded USCIS to remove language from their website prohibiting F-1 STEM OPT students working at the third part client locations. "The USCIS has been making arbitrary rules and memos for over eight years, it's our top priority to set things right and hold USCIS accountable to follow the regulations set by the United States Congress," said ITServe's national president for 2018, Gopi Kandukuri. Referring to the recent spate of H-1B denials that ITServe members received, Kandukuri added members of ITServe Alliance are tired of receiving random denials for no reason. "The new battlefield for us is the federal courthouse and not USCIS service centers, he said.

IT companies file lawsuit against US immigration agency over shorter duration of H1B visas

The country&#39;s second-largest IT services firm Infosys today reported a marginal growth in consolidated net profit at Rs 3,603 crore for the quarter ended March 2017.

Infosys will also pay up to Rs 13,000 crore to shareholders during 2017-18 by way of dividend and/or share buyback. It has named Independent Director Ravi Venkatesan co-Chairman of the company.

Net profit came in 0.2 per cent higher than Rs 3,597 crore in the same period previous year, according to a BSE filing by Infosys.

Revenue of the Bengaluru-based company grew 3.4 per cent to Rs 17,120 crore in the March quarter compared to Rs 16,550 crore in the same period of 2015-16, it added.

The company expects its 2017-18 revenue to grow between 6.1 per cent and 8.1 per cent in dollar terms and 6.5-8.5 per cent in constant currency terms.

On a sequential basis, Infosys&#39; net profit fell 2.8 per cent while revenue declined 0.9 per cent.

Infosys CEO Vishal Sikka said, &quot;Unanticipated execution challenges and distractions in a seasonally soft quarter affected our overall performance.&quot;

He added: &quot;Looking ahead, it is imperative that we increase our resilience to the dynamics of our environment and we remain resolute in executing our strategy, path to transform Infosys and drive long term value for all stakeholders.&quot;

In US dollars, Infosys net profit was up 1.8 per cent at USD 543 million for the March quarter while revenue grew 5 per cent to USD 2.5 billion.

For the full year, net profit grew 4.3 per cent to USD 2.1 billion while revenue was up 7.4 per cent to USD 10.2 billion.

The board has recommended a final dividend of Rs 14.75 per share for 2016-17.

(PTI)

Infosys will also pay up to Rs 13,000 crore to shareholders during 2017-18 by way of dividend and/or share buyback

The country's second-largest IT services firm Infosys today reported a marginal growth in consolidated net profit at Rs 3,603 crore for the quarter ended March 2017. Infosys will also pay up to Rs 13,000 crore to shareholders during 2017-18 by way of dividend and/or share buyback. It has named Independent Director Ravi Venkatesan co-Chairman of the company. Net profit came in 0.2 per cent higher than Rs 3,597 crore in the same period previous year, according to a BSE filing by Infosys. Revenue of the Bengaluru-based company grew 3.4 per cent to Rs 17,120 crore in the March quarter compared to Rs 16,550 crore in the same period of 2015-16, it added. The company expects its 2017-18 revenue to grow between 6.1 per cent and 8.1 per cent in dollar terms and 6.5-8.5 per cent in constant currency terms. On a sequential basis, Infosys' net profit fell 2.8 per cent while revenue declined 0.9 per cent. Infosys CEO Vishal Sikka said, "Unanticipated execution challenges and distractions in a seasonally soft quarter affected our overall performance." He added: "Looking ahead, it is imperative that we increase our resilience to the dynamics of our environment and we remain resolute in executing our strategy, path to transform Infosys and drive long term value for all stakeholders." In US dollars, Infosys net profit was up 1.8 per cent at USD 543 million for the March quarter while revenue grew 5 per cent to USD 2.5 billion. For the full year, net profit grew 4.3 per cent to USD 2.1 billion while revenue was up 7.4 per cent to USD 10.2 billion. The board has recommended a final dividend of Rs 14.75 per share for 2016-17. (PTI)

Infosys Q4 net profit at Rs 36 billion, up 0.2% on year

The US Department of Homeland Security announced steps on Monday to prevent the fraudulent use of H1B visas, used by employers to bring in specialised foreign workers temporarily, which appeared to fall short of President Donald Trump&#39;s campaign promises to overhaul the programme.

A White House official said Trump may still do more on the programme.&nbsp;

Trump had promised to end the lottery system for H1B visas, which gives each applicant an equal chance at 65,000 positions each year.

Lobbyists for businesses who rely on H1B visas, commonly used by the tech sector, had expected Trump to upend the lottery in favour of a system that prioritised workers who are highly skilled and would be highly paid in the United States.

The lottery for fiscal year 2018 opened on Monday without changes.

The start of the lottery was seen by those watching the issue as the unofficial deadline for the Trump administration to enact H1B visa reform, and the failure to meet that deadline signals that Trump`s promised overhaul of the system may be off the table or long delayed.&nbsp;

&quot;More oversight is a good start, but employers can still use the programme legally to depress wages and replace American workers. That falls short of the promises President Trump made to protect American workers,&quot; said Peter Robbio, a spokesman for Numbers USA, a Washington-based group that advocates for limiting immigration into the United States.&nbsp;

The Trump administration has taken other steps to crack down on H1B visa abuse, such as issuing a Justice Department warning to employers and announcing plans to increase transparency on applicants.

&quot;These are important first steps to bring more accountability and transparency to the H1B system,&quot; a White House official said.&nbsp; 
&quot;The administration is considering several additional options for the president to use his existing authority to ensure federal agencies more rigorously enforce all aspects of the programme.&quot;

Tech companies rely on the programme to bring in workers with special skills and have lobbied for an expansion of the number of H1B visas awarded.&nbsp;

Proponents of limiting legal immigration, including Trump`s senior adviser Stephen Miller, have argued the programme gives jobs that Americans could fill to foreign workers at a less expensive cost.&nbsp;

The measures announced by DHS on Monday focus on site visits by US authorities to employers who use H1B visas.&nbsp;

In future site visits, US Citizenship and Immigration Services agents will investigate incidents where an employer&#39;s basic business information cannot be validated; businesses that have a high ratio of H1B employees compared with US workers; and employers petitioning for H1B workers who work off-site.&nbsp;

(Reuters)

The department of homeland security said the measures were meant to prevent the fraudulent use of the programme

The US Department of Homeland Security announced steps on Monday to prevent the fraudulent use of H1B visas, used by employers to bring in specialised foreign workers temporarily, which appeared to fall short of President Donald Trump's campaign promises to overhaul the programme. A White House official said Trump may still do more on the programme. Trump had promised to end the lottery system for H1B visas, which gives each applicant an equal chance at 65,000 positions each year. Lobbyists for businesses who rely on H1B visas, commonly used by the tech sector, had expected Trump to upend the lottery in favour of a system that prioritised workers who are highly skilled and would be highly paid in the United States. The lottery for fiscal year 2018 opened on Monday without changes. The start of the lottery was seen by those watching the issue as the unofficial deadline for the Trump administration to enact H1B visa reform, and the failure to meet that deadline signals that Trump`s promised overhaul of the system may be off the table or long delayed. "More oversight is a good start, but employers can still use the programme legally to depress wages and replace American workers. That falls short of the promises President Trump made to protect American workers," said Peter Robbio, a spokesman for Numbers USA, a Washington-based group that advocates for limiting immigration into the United States. The Trump administration has taken other steps to crack down on H1B visa abuse, such as issuing a Justice Department warning to employers and announcing plans to increase transparency on applicants. "These are important first steps to bring more accountability and transparency to the H1B system," a White House official said. "The administration is considering several additional options for the president to use his existing authority to ensure federal agencies more rigorously enforce all aspects of the programme." Tech companies rely on the programme to bring in workers with special skills and have lobbied for an expansion of the number of H1B visas awarded. Proponents of limiting legal immigration, including Trump`s senior adviser Stephen Miller, have argued the programme gives jobs that Americans could fill to foreign workers at a less expensive cost. The measures announced by DHS on Monday focus on site visits by US authorities to employers who use H1B visas. In future site visits, US Citizenship and Immigration Services agents will investigate incidents where an employer's basic business information cannot be validated; businesses that have a high ratio of H1B employees compared with US workers; and employers petitioning for H1B workers who work off-site. (Reuters)

US begins crackdown on H1B visa programme

Tech Mahindra Ltd, India&#39;s fifth-biggest software services exporter, will buy US-based healthcare IT consulting firm CJS Solutions Group for an enterprise value of $110 million.

Tech Mahindra, which will acquire CJS through a unit, will make an upfront cash payment of $89.5 million for the acquisition of 84.7 per cent stake in CJS with the remaining 15.3 per cent to be acquired over three years, the company said in a statement.

CJS, which operates as the HCI Group, specialises in the implementation of electronic medical records (EMR) software.

Healthcare and life sciences business, which accounts for around 7 per cent&nbsp;of Tech Mahindra&#39;s revenues, has been a key focus area for the Indian company and the acquisition of CJS will help it consolidate its position, the company said.

Ernst &amp; Young acted as the due diligence advisor to Tech Mahindra while Allen &amp; Company LLC were the financial advisors to HCI Group.

The transaction is expected to close before the end of April.

Indian companies are speeding up acquisitions of US&nbsp;firms with local staff as they try to beat challenges posed by an expected tightening of visa rules in their biggest market.

India&#39;s $150 billion information technology industry uses H-1B visas to fly engineers and developers to the United States to provide services to clients.&nbsp;

Any tightening of the visa scheme rules could restrict the companies&#39; ability to send staff to the United States.

President Donald Trump&#39;s administration last week announced it would temporarily suspend expedited applications for H-1B visas.

(Reuters)

Indian companies are speeding up acquisitions of US?firms, trying to beat challenges as Visa rules are expected to tighten under Trump

Tech Mahindra Ltd, India's fifth-biggest software services exporter, will buy US-based healthcare IT consulting firm CJS Solutions Group for an enterprise value of $110 million. Tech Mahindra, which will acquire CJS through a unit, will make an upfront cash payment of $89.5 million for the acquisition of 84.7 per cent stake in CJS with the remaining 15.3 per cent to be acquired over three years, the company said in a statement. CJS, which operates as the HCI Group, specialises in the implementation of electronic medical records (EMR) software. Healthcare and life sciences business, which accounts for around 7 per cent of Tech Mahindra's revenues, has been a key focus area for the Indian company and the acquisition of CJS will help it consolidate its position, the company said. Ernst & Young acted as the due diligence advisor to Tech Mahindra while Allen & Company LLC were the financial advisors to HCI Group. The transaction is expected to close before the end of April. Indian companies are speeding up acquisitions of US firms with local staff as they try to beat challenges posed by an expected tightening of visa rules in their biggest market. India's $150 billion information technology industry uses H-1B visas to fly engineers and developers to the United States to provide services to clients. Any tightening of the visa scheme rules could restrict the companies' ability to send staff to the United States. President Donald Trump's administration last week announced it would temporarily suspend expedited applications for H-1B visas. (Reuters)

Tech Mahindra to buy US healthcare IT firm CJS for $110 million

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