Why is Cognizant Technology Solutions stock sliding today?

The U.S. is suspending Microsoft, Adobe, and other IT firms from a green card program for skilled foreign workers, citing fraud. The companies cannot submit new or pending labor certification applications. The move affects H-1B visa usage, with tech firms being major participants. The administration is also investigating universities over international student programs.

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.

The U.S. government suspended Microsoft and Adobe from the PERM program, which allows companies to apply for green cards for H-1B visa workers, citing alleged fraud. Other major IT firms, including Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini, were also suspended. The Labor Department is investigating nine universities over J-1 visas. Microsoft and Adobe shares rose slightly, while Cognizant and Infosys fell.

The U.S. government suspended Microsoft, Adobe, and several IT firms from a green card program, citing alleged fraud and aiming to boost American hiring. Suspended companies include Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini. The U.S. Labor Department will not process new or pending labor certification applications from these firms. Microsoft did not immediately respond to requests for comment.

The U.S. Department of Labor suspended Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft, and Adobe from the Permanent Labour Certification Program, citing concerns over job displacement for American workers. The suspension affects new and pending applications, with the companies having requested nearly 3 million foreign workers since 2009.

The Trump administration suspended Microsoft, Adobe, and several IT outsourcing firms from the PERM green card program, citing alleged abuse of the system and displacement of American workers. According to officials, these companies laid off U.S. workers while applying for H-1B visas and green cards for foreign workers. Microsoft had 6,258 H-1B approvals and 3,157 PERM filings in the last fiscal year, according to government data.