US bars Microsoft, Adobe, and major IT firms from green card program for skilled foreign workers

The U.S. government suspended Microsoft (MSFT) from the H-1B visa program due to alleged misuse, following criticism from Vice President JD Vance. MSFT is modestly undervalued by 10.3% with an intrinsic value of $591.09, and has a GF Score of 99/100. Insiders have net sold $112.6M in shares over the past year.

The U.S. Labor Department has suspended Microsoft (MSFT) and Adobe (ADBE) from a key visa program, impacting their hiring and retention strategies. Consultancies like Wipro are more affected due to their reliance on this program, leading to potential profitability concerns. The suspension may lead to higher replacement costs and less stable project teams, particularly for consulting businesses.

The US Labor Department suspended Microsoft and Adobe from a green card program, citing federal investigations. Cognizant, Infosys, Capgemini, Tata, Wipro, and HCL are also barred from new applications. Since 2009, these companies filed petitions for nearly 3 million foreign workers, according to the Labor Secretary.

The Trump administration has indefinitely barred Microsoft and other tech companies from seeking permanent residency for foreign workers under the PERM program, accusing them of misusing the system to replace American workers. According to Vice President JD Vance, Microsoft laid off 6,000 U.S. workers while hiring 6,300 non-citizens on H-1B visas. The Labor Department also suspended Adobe and several IT outsourcing firms from the program. Microsoft has not yet responded to the allegations.

Microsoft is suspended from the PERM green card program, accused by VP Vance of H-1B abuse. The Labor Department alleges fraud in labor certification. Microsoft shares traded around $529.70, unchanged post-announcement.

The US suspended Cognizant, Infosys, Wipro, HCL, Capgemini, and Adobe from the PERM labor certification program, impacting green card applications for foreign workers. This follows accusations of program abuse and calls to prioritize hiring American workers, according to Vice President JD Vance. Separately, the DHS proposed a $70,000 fee for international students in the OPT program.