Microsoft, Infosys, Tata, Wipro, Cognizant, HCL and Capgemini hit by US H-1B, green card crackdown
The U.S. Department of Labour suspended Microsoft, Adobe, and several Indian IT firms (Infosys, Tata, Wipro, HCL, Cognizant, Capgemini) from the PERM program, citing alleged fraud and aiming to boost American hiring. The move impacts green card processes but not H-1B visas directly. The companies have collectively sought nearly 3 million foreign workers since 2009, according to the administration.
How this was made
The 30-second read
Why it matters
Regulatory action directly restricts the ability of affected companies to hire foreign workers, potentially increasing staffing costs and slowing US growth initiatives.
Market read
The suspension creates immediate regulatory risk for major IT services firms, likely pressuring their stock prices and raising sector‑wide concerns about US hiring policies.
What to watch
Potential for legal challenges or policy reversals could mitigate long‑term effects.
Background
The US Department of Labor announced a suspension of PERM (permanent labour certification) applications for several large tech and consulting firms, part of a broader crackdown on foreign‑worker programs.
Ticker impact
US Dept of Labor suspended Microsoft from new PERM applications, limiting its ability to hire foreign workers.
likely pressure as market prices in regulatory risk
Regulatory suspension directly limits workforce expansion and could increase costs.
Adobe was also suspended from the PERM programme, affecting its foreign hiring pipeline.
likely pressure from regulatory risk
Similar to Microsoft, the suspension may raise operational costs.
Infosys was named among firms barred from new PERM filings, impacting its US staffing operations.
likely pressure as investors price in hiring limitations
Infosys relies heavily on US‑based H‑1B workforce.
Wipro was included in the PERM suspension, curbing its US hiring capacity.
likely pressure from regulatory action
Wipro's US growth is tied to foreign‑worker visas.
Cognizant's PERM filings were previously suspended and remain under scrutiny, reinforcing regulatory risk.
likely pressure as market assesses compliance risk
Cognizant's business model depends on foreign talent.
Market effects
IT services and consulting sector faces heightened regulatory risk in the US.
Potential slowdown in hiring for Indian IT firms operating in the US.
Signals broader US immigration policy tightening affecting multinational tech and consulting firms.
Counterpoint
If firms can pivot to domestic hiring or remote work, the impact may be limited.
Key entities
- RegulatorDepartment of Labor
U.S. agency enforcing immigration and labour certification rules.
- OfficialU.S. Treasury Secretary Janet Yellen
Quoted as supporting tighter enforcement of H‑1B and green‑card programs.
