US Government Suspends Microsoft and Seven Others from PERM Visa Program

The suspension targets companies accused of exploiting H-1B visa channels to secure permanent residency for foreign staff while simultaneously cutting domestic headcount. Vance cited specific data, noting that Microsoft laid off 6,000 American workers in the past year while receiving approval for 6,300 H-1B visas and nearly 3,000 green cards. According to the Vice President, this amounts to replacing every laid-off American with one and a half foreign workers.

Labour Secretary Keith Sonderling described the move as a crackdown on "visa mills," noting that the eight affected firms—which include Cognizant, Infosys, Tata, Wipro, and HCL—have collectively requested nearly 3 million foreign workers since 2009. The administration claims these companies profit by undercutting American wages, asserting that H-1B holders often earn $20,000 to $48,000 less than their domestic counterparts in similar roles.

Microsoft challenged the government's characterization, stating that 80 percent of its 6,000 H-1B filings last year were intended to retain or update the status of existing personnel rather than recruit new hires. The tech giant maintained that its compensation for visa holders remains consistent with domestic employees performing comparable work, emphasizing its continued reliance on American talent.