U.S. freezes green card applications at Microsoft, Adobe and more

Vice President JD Vance announced that Microsoft and Adobe have been suspended from the H1B visa program due to alleged abuse and fraud. The taskforce also plans to investigate nine universities for J1 student visa fraud. Vance claimed Microsoft laid off 6,000 American workers while hiring 6,300 H1B visa holders and 3,000 green card holders, replacing each laid-off worker with 1.5 foreign workers.

The US suspended Microsoft and other tech firms from the Permanent Labor Certification Program, accusing them of abuse. Microsoft claims most of its workers are American and disputes the allegations. The suspension comes amid broader immigration crackdowns.

The U.S. Labor Department barred Microsoft (MSFT) and Adobe (ADBE) from filing new H-1B green card applications, citing concerns over hiring practices. Microsoft stated it pays H-1B workers competitively and most filings were for existing employees. Amazon (AMZN), the top H-1B employer, was not affected. The department is also investigating universities for potential research access by foreign entities.

Microsoft (MSFT) is suspended from the PERM labor-certification program, potentially impacting its ability to retain foreign workers. Vice President JD Vance accused the company of abusing the system. Other tech firms like Cognizant (CTSH), Infosys (INFY), and Adobe (ADBE) are also affected. Shares of some companies fell over 3%, while Microsoft's were unchanged.

Vice President JD Vance announced the Trump administration is suspending Microsoft and eight other companies from a green card program, accusing them of replacing American workers with foreign labor. Microsoft received 6,258 H-1B approvals and 3,157 green card filings last fiscal year, according to federal data. The company disputes the claims, stating it meets visa standards and pays H-1B employees comparably. Vance also launched probes into nine universities over J-1 visa usage.

Vice President JD Vance accused Microsoft of abusing the H-1B visa program, citing layoffs of 6,000 U.S. workers while obtaining 6,300 H-1B visas and 3,000 green cards. The administration suspended Microsoft from applying for green cards for H-1B visa holders. Microsoft defended its practices, stating most H-1B filings were for existing employees and that it pays high wages.