‘Nepotism never fails’: Indian-origin FedEx CEO Raj Subramaniam draws flak over H-1B hiring

Among one the most raging issues being discussed in the US and across the globe right now, is the future of the H-1B visa and the workers who have arrived in the land of dreams on it. Ever since Trump took over with his second term, illegal migration and H-1B have been top targets of his administrative policies and along with the American economy and companies, workers have also been suffering. People who are the sole earning members of their family or live in the country on the basis of their work are facing sudden challenges with employers backing out on their support and job insecurity looming over their heads. Now, according to The Dallas Express, official documents show that FedEx significantly raised the number of foreign workers it hired under the H-1B visa and decreased the number of American positions in different parts of the US. This has led to Indian-origin FedEx CEO Rajesh Subramaniam receiving harsh social media flak for the company’s decisions. Here’s all you need to know.

FedEx’s reformed hiring pattern

In late 2022, FedEx, a prominent international shipping label received a massive $2 billion contract. Soon, the company began hiring outside the US more than inside it. As per the company itself, the hires are based on business needs and skills. A company spokesperson told The Dallas Express that FedEx is focused on helping employees grow and building a workforce as per its operations. “Across our business, we employ a wide range of roles, requiring a variety of skillsets and are committed to complying with all applicable federal immigration laws,” they said.

FedEx CEO faces flak for H-1B hiring

Now, FedEx CEO Raj Subramaniam is facing heavy criticism on social media for firing American employees and dismissing their jobs to bring in foreign workers. The move is especially surprising at a time when most companies are cutting off H-1B workers to avoid the hefty $100,000 fee under the new Trump administration rules. “FedEx CEO. Indian nepotism never fails. They will always replace you,” wrote a person on X. “But we were told it’s racist to hire our own people. But everyone else can do it. This is what tyranny looks like at the government level,” pointed out another. “That’s what happens when Indians are made CEOs of American companies,” another social media user wrote. “Cancel every damn visa… send them all home…” one called out while numerous others called out for the contract to be dismissed. “Indian CEO takes over, fires Americans, hires H1Bs, then ships jobs to India. Like clockwork,” claimed another.

The situation revealed

According to The Dallas Express, the US Transportation Command chose FedEx and two other companies in December 2022 to manage package deliveries for government organisations. The value for the arrangement was estimated at $2.24 billion and is a part of the Next Generation Delivery Service-2 initiative, as per GovCon Wire. The contract’s first phase began on April 1st, 2023 and will end on September 30th, 2026. As per statistics from the US Citizenship and Immigration Services H-1B database, when the contract was made public in 2022, FedEx recruited about 20 approved H-1B employees. The number surged to 500 over the next three years with an increase in hiring in 2024 and 2025. As per additional data, some of the companies’ visa applications were for commercial and technical jobs in Texas whose salaries ranged between $100,000 and $115,000. Additionally, the applicants showed start dates in places that coincided with layoffs in the same areas. It is crucial to note that not every visa application leads to a successful hiring, making it difficult to determine the precise number of people who were hired.