World News: Trump administration freezes green cards for Microsoft, IT firms, probes universities

The US Department of Labor suspended eight tech companies, including Microsoft, Adobe, and Infosys, from the PERM program due to alleged misuse. The suspension affects green card sponsorship for foreign workers, including Africans. Microsoft disputed claims, stating most visas were for existing employees. The move aligns with increased scrutiny of foreign labor use amid US job cuts.

India criticized U.S. VP Vance's remarks on immigration, calling them offensive. The U.S. suspended some Indian IT firms, including Microsoft and Adobe, from the PERM program. India reassured citizens about H-1B visas. TCS-IN and Infosys noted reduced H-1B reliance and U.S. hiring plans. TCS-IN applied for few H-1B visas recently and plans to hire 15,000 U.S. employees.

The Trump administration banned Microsoft, Adobe, and six other companies from sponsoring green cards for H-1B visa workers, citing investigations and allegations of displacing American workers. The ban affects pending and future applications, with no end date set. Microsoft received 6,258 H-1B approvals and 3,157 PERM filings in the last fiscal year, according to federal data.

Microsoft's shares dropped 1.35% after the U.S. Department of Labor suspended it from the PERM green card program, citing potential misuse of immigration rules. The suspension impacts green card processing but not H-1B visas. Microsoft stated most H-1B applications were for current employees, and it complies with visa regulations. Separately, AI revenue concerns weighed on tech shares, with the Nasdaq 100 down 1.4%.

Microsoft shares fell 1.35% after the U.S. Labor Department suspended it from the PERM program due to immigration rule probes. The company stated most H-1B applications were for current employees. Separately, OpenAI's lower-than-expected revenue pressured AI-linked shares. Analysts maintain a Strong Buy consensus on Microsoft, with a 12.2% upside target.

On October 8, 2026, the US suspended eight companies, including Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL, Capgemini, Microsoft, and Adobe, from the PERM program, halting new and pending green card applications. The move follows allegations of fraud in H-1B and PERM programs, with the labor department citing 3 million requested workers and 100,000 certifications since 2009. Microsoft faced specific accusations of laying off Americans while hiring foreign workers.