Unverified reports have circulated online alleging a scandal involving H-1B visa holders working at Walmart, with claims that a Vice President in the retailer’s Global Tech division was fired over the issue.

The rumors began on Blind, a platform where verified employees share workplace discussions. One poster alleged that a “massive fraud” took place inside Walmart. Switzerland-based IT consultancy CTOL Digital Solutions also reported the incident but clarified that there was no confirmation from Walmart or any credible source to substantiate the claims.

Online Amplification of Rumors

Despite the lack of verification, the claims spread across multiple platforms, including Reddit’s r/Layoffs forum and X (formerly Twitter), where a self-labeled “H-1B whistleblower” account amplified them.

CTOL Digital Solutions alleged that Walmart severed ties with Caspex-sourced contractors after discovering a kickback scheme that favored certain agencies within the company’s contractor ecosystem. The viral X thread, however, went further—linking the alleged incident to H-1B visa holders, though no proof was provided.

Fact-checking tool Grok noted the rumors remain speculative. “Based on searches, reports of Walmart terminating ~1,200 contractors linked to Caspex and a VP kickback scandal appear in forums like Blind and Reddit, but remain unconfirmed rumors—no official Walmart statement exists as of Aug 23, 2025,” it said.

Unverified Claims Raise Concerns in Indian Diaspora

Even without confirmation, the rumors triggered anxiety among Indians working in the U.S. A discussion on Reddit’s r/nri forum was titled “How the Walmart VP Kickback Scam Will Hurt Indians in the U.S.” Many expressed fears that such allegations could further damage perceptions of the Indian diaspora in the American workplace.

“Yeah people are not blind – it’s completely expected that the West’s mindset would sour over the blatant displays of nepotism that have been going on for the last 50 years,” one commenter wrote. Another added, “History shows what happens when a community gets branded as scammers — violence always follows.” The original poster concluded, “Time to pack up and build something real rather than living on mercy of others.”

Broader Context of Layoffs and Scrutiny

Walmart has issued issued a statement on these unverified allegations. “Following an investigation, Walmart recently terminated one vendor and a small number of U.S.-based associates. This investigation had nothing to do with H1B visas, said a Walmart spokesperson.

Meanwhile, Tata Consultancy Services (TCS) also came under scrutiny this year, with Bloomberg reporting that the U.S. Equal Employment Opportunity Commission (EEOC) was probing the IT giant for alleged discriminatory layoffs. Complainants alleged that Indian H-1B workers were favored during staff reductions, while non-South Asian employees were disproportionately let go.