US suspends Microsoft, Adobe from filing for green cards

The Trump administration has suspended major tech firms, including Microsoft and Adobe, from filing for green cards through the Permanent Labor Certification Program (PERM). US Labor Secretary Keith Sonderling accused these tech companies of abusing the PERM program, stating they have been the subject of federal investigations. The suspensions affect prominent IT outsourcing firms such as Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini, many of which are Indian or employ thousands of Indian professionals in the US.

Vice President JD Vance criticized the PERM system, alleging companies falsely claim they have advertised positions in small-town newspapers without receiving American responses, thereby replacing American workers with foreign labor. Microsoft, the most frequent user of this system, stated that the majority of its workforce is American and that H-1B filings primarily involve individuals already based in the US.

Microsoft also highlighted its high compensation rates for employees. The H-1B visa program, another aspect of the Trump administration's immigration crackdown, has been criticized for potentially displacing American workers in favor of lower-cost foreign labor. Microsoft employs 125,000 US workers and 103,000 international workers.