Microsoft reacts to US immigration crackdown while Trump honours Nadella

The Trump administration suspended Microsoft, Adobe, and several Indian IT firms from a US visa program, accusing them of abuse. Microsoft shares fell 1.3%, while others saw mixed reactions. The companies are under investigation for misuse of the PERM program, which sponsors foreign workers for permanent residency. Microsoft defended its practices, stating most visa applications were for current employees.

The US suspended eight IT firms, including Microsoft, Tata, Infosys, and Wipro, from a green card program for foreign workers. The suspension, announced by Vice President J D Vance and others, cites abuse of the system and job market impact on Americans. Microsoft is accused of laying off US workers while hiring foreign labor. The Department of Labour will not process new or pending applications from these companies.

Vice President JD Vance suspended Microsoft and Adobe from the PERM green card program, accusing Microsoft of fraud. Vance claims Microsoft laid off 6,000 U.S. workers while hiring 6,300 H-1B visa holders and 3,000 green card holders. Microsoft denies wrongdoing, stating it pays competitive wages and hires mostly American workers. The suspension may last indefinitely. Vance also criticized the H-1B visa program for fraud.

The Federal Energy Regulatory Commission designated Google Energy as a Category 2 wholesale electricity seller in the PJM market. Google's power generation capacity exceeded 500 MW, requiring periodic reports to prevent market manipulation. The company is investing $25B in data centers and power projects, including a $4.3B nuclear power deal and a $3B hydropower upgrade. Competitors Amazon and Microsoft are also securing power supply agreements in the PJM market.

The Department of Labor (DOL) has suspended new and pending PERM applications for Microsoft, Adobe, and other major IT firms, citing alleged misuse of employment-based immigration programs. The suspension, which can last up to 180 days, is tied to ongoing investigations. The DOL's written notices will provide further details on the scope and duration of the suspensions.

The US has frozen green-card filings for Microsoft, Adobe, and IT outsourcers, citing fraud concerns. The move targets companies like Cognizant, Infosys, and Wipro, potentially affecting thousands of foreign tech workers' permanent residency paths. Nine universities, including Harvard, are also under investigation for visa misuse. The freeze does not impact current H-1B visa holders but blocks a common route to permanent residency.