US suspends Microsoft, Adobe from filing for green cards

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.

The Trump administration suspended the Permanent Labor Certification Program for Microsoft, Cognizant, Infosys, Tata Consultancy, Wipro, HCL, and Capgemini, alleging abuse. Shares of Cognizant, Infosys, and Wipro fell. The move targets foreign worker visas, a key tech industry pipeline. Microsoft's CEO is set to receive a National Medal of Science.

The U.S. Department of Labor suspended Microsoft (MSFT) and Adobe from its permanent labor certification program due to federal investigations. Microsoft's stock is trading at $522.01, 11.7% below its GF Value™ of $591.09, with a GF Score™ of 99/100. The company has seen significant insider sales but no purchases in the last three months.