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US suspends Microsoft, Adobe, and six IT giants from PERM green card program

The US Department of Labor has temporarily suspended eight major tech companies, including Microsoft, Adobe, Infosys, and TCS, from sponsoring workers under the PERM permanent residency program amid allegations of fraud.

Donald Trump presenting an award medal to Microsoft CEO Satya Nadella in front of American flags.
Image: @IndianExpress

The US Department of Labor has temporarily halted new applications under the permanent labor certification (PERM) program for eight major technology companies, citing alleged fraud according to Reuters. The suspension affects Microsoft, Adobe, Infosys, Tata Consultancy Services, Wipro, HCLTech, Cognizant, and Capgemini while government investigations proceed.[5][11][3][9][14]

JD Vance announced the action against Microsoft, accusing the company of abusing the foreign-worker system and noting it had cut 6,000 American workers while acquiring 6,000 foreign visas. Microsoft defended its immigration practices, explaining that 80% of its filings covered existing personnel rather than fresh recruitment. The crackdown created an unusual split screen in Washington: Donald Trump honored Microsoft CEO Satya Nadella with the National Medal of Technology and Innovation on the very same day the suspension was declared.[1][14][7][15][2][8]

The PERM program is distinct from temporary H-1B visas and serves as the pathway for employers to sponsor foreign workers for employment-based green cards. While the suspension delays future permanent residency approvals, existing green cards and active work visas remain valid, according to Inc42. Industry experts cited by BusinessLine warned that the freeze could increase onshore hiring costs and accelerate the transfer of higher-value tech work to India, though financial markets remained unfazed by the policy move.[13][6][3][4][10]

Key facts

  • The US Department of Labor temporarily suspended eight tech firms from filing new PERM green card applications while investigations continue.
  • Reuters reported that the US government cited alleged fraud as the basis for the suspension.
  • The eight suspended companies are Microsoft, Adobe, Cognizant, Infosys, Tata (TCS), Wipro, HCLTech, and Capgemini.
  • JD Vance stated that Microsoft laid off 6,000 American employees while obtaining 6,000 visas.
  • Microsoft responded that 80% of the filings in question covered existing staff rather than new recruitment.
  • Donald Trump awarded Microsoft CEO Satya Nadella the National Medal of Technology and Innovation on the same day the suspension was announced.
  • Existing work visas and green cards already held by employees at the affected firms are not canceled.
  • Think tank GTRI noted the US accounts for 54.1% of India's software and IT-enabled services exports.

Sources · 10 sources

  1. BU

    businessline@businesslinePost on X ·

    Donald Trump honoured Microsoft CEO Satya Nadella for his contribution to technology, while JD Vance announced the company's suspension from a green card programme, bringing immigration policy and America's tech ambitions into focus. https://t.co/9w4Lg90w7W

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  2. CB

    Crypto BriefingArticle ·

    Microsoft suspended from PERM green card program the same day its CEO receives a medal The suspension highlights the tension between tech innovation reliance on foreign talent and the scrutiny of immigration practices, impacting workforce dynamics. The post Microsoft suspended from PERM green card program the same day its CEO receives a medal appeared first on Crypto Briefing .

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  3. BU

    businessline@businesslinePost on X ·

    The US Department of Labor’s (USDOL) temporary suspension of new applications under the permanent labor certification (PERM) programme for several technology companies could raise hiring costs and prompt Indian IT firms to rethink their US staffing strategies, while accelerating the shift of higher-value technology work to India, industry experts said, reports Sanjana B. https://t.co/XdjXSQRulx

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  4. BT

    Business Today@business_todayPost on X ·

    IT Stocks Rally Despite Trump's US Visa Crackdown |Why Markets Aren't Worried About PERM Suspensions #PERM #H1BVisa #USImmigration #IndianIT #TechNews #ITStocks #TCSshares #ITshares #Infosys https://t.co/kjD2uyeGSt

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  5. TE

    Techmeme@TechmemePost on X ·

    The US suspends Microsoft, Adobe, Cognizant, Infosys, and others from a program that lets skilled foreign workers gain permanent residency, citing alleged fraud (@danrosziff / Reuters) (Visit Techmeme dot com for the link and full context!)

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  6. IN

    Inc42@Inc42Post on X ·

    The US has halted green card processing under the PERM programme for eight major tech companies, including TCS, Infosys, Wipro and Microsoft. The move could delay permanent residency for Indian tech workers sponsored by these companies, though existing green cards and work visas are not cancelled. With uncertainty rising for skilled workers in the US, could this trigger a reverse brain drain, bringing experienced tech talent back to India’s growing AI, deeptech and semiconductor ecosystems? 💡 Could this become an opportunity for India’s startup ecosystem? #GreenCard #IndianIT #USImmigration #TechTalent #Reels #Inc42 #fyp

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  7. BU

    businessline@businesslinePost on X ·

    After the US suspended Microsoft from a green card programme for foreign workers, the technology company defended its H-1B practices, saying most applications involved existing employees and not fresh recruitment. https://t.co/bYpKvrQM1k

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  8. TI

    The Indian Express@IndianExpressPost on X ·

    Trump awards Satya Nadella as US suspends Microsoft from PERM green-card programme https://t.co/srLTYvKC1A https://t.co/dhzhZcRjfd

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  9. MI

    Mint@livemintPost on X ·

    #MintPremium | The suspension of green card processing for Microsoft, Adobe, Infosys, TCS, Wipro, HCLTech, Cognizant and Capgemini may complicate talent retention and hiring. Companies could rely more on temporary visas, US-based hiring and offshore delivery while investigations continue. ✍️ Shelley Singh https://t.co/fHuzP0uC8Y

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  10. BT

    Business Today@business_todayPost on X ·

    Trump's Green Card Crackdown Hits TCS, Infosys, Wipro & Microsoft | Stock Markets Unfazed #TrumpVisaCrackdown #GreenCard #PERMProgramme #H1BVisa #IndianIT #TCS #Infosys #Wipro #Microsoft #JDVance #IndiaUSTrade #BusinessTodayTV https://t.co/w9SddMVygb

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  11. BU

    businessline@businesslinePost on X ·

    The US on Thursday suspended IT firms Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe from the Permanent Labour Certification Programme, which allows companies to apply for green cards for H-1B visa workers. Read the full article using the link below: 👇 https://t.co/RAI7NRN4wt

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  12. BU

    businessline@businesslinePost on X ·

    The US decision to suspend eight IT firms, including Tata, Infosys and Wipro, from a programme for foreign workers seeking green cards signals a more protectionist approach toward foreign technology professionals, with wider implications for India as the US accounts for 54.1 per cent of its software and IT-enabled services exports, think tank GTRI said on Friday. https://t.co/tgFkgIYY2t

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  13. ET

    Economic Times@EconomicTimesPost on X ·

    TCS, Infosys, Wipro & others suspended from PERM green card program by US. What is it & how is it different from H1-B? https://t.co/IlpEgR6MJ1

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  14. TN

    TNW@thenextwebPost on X ·

    Vance: Microsoft cut 6,000 Americans and got 6,000 visas. The US suspended 8 firms from green card sponsorship. Microsoft says 80% of those filings covered existing staff. https://t.co/fvcas6uAIJ https://t.co/DGmUCn6oeW

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  15. MN

    Mario Nawfal@MarioNawfalPost on X ·

    🇺🇸 I had to read this twice, because the Trump administration is doing two completely different things to Microsoft on the same day. JD Vance just accused Microsoft of abusing America's foreign-worker system more than any other U.S. company. The administration is now freezing its employment-based green-card applications, alongside those of Adobe, Infosys, Tata, Wipro and several other major tech firms. And yet, today, Trump is also set to award Microsoft's CEO Satya Nadella the National Medal of Technology and Innovation. The country's highest honor for technological achievement. I actually find Vance's explanation interesting. He says Microsoft is a great American company. The administration wants it to succeed. But he argues that its success shouldn't come at the expense of American workers. And that gets to a much bigger question about the American technology industry. For decades, companies like Microsoft have built their global dominance partly by attracting talent from around the world. Now Washington is asking whether that model has become a way to replace American workers rather than supplement them. The allegations remain contested, and Microsoft hasn't publicly responded. But I'd be very interested to hear what Nadella has to say when he accepts his medal. It's not often Washington accuses your company of abusing the system in the morning and honors you for technological excellence later that same day. Source: Financial Times / Writer: Oliver

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