Microsoft says 'vast majority' of US employees are Americans, defends H-1B hiring amid green card freeze
Microsoft defended its H-1B hiring practices, stating 80% of its 6,000 H-1B applications were for existing employees. The US Labor Department suspended Microsoft and Adobe from the PERM program due to investigations. Shares of Microsoft fell 1.3%, while other tech firms saw mixed reactions. The suspension may impact green card applications for Indian professionals.
How this was made

The 30-second read
Why it matters
Regulatory action directly impacts hiring pipelines, could increase labor costs, and adds uncertainty to earnings forecasts for the affected companies.
Market read
The suspension triggered an immediate sell‑off in Microsoft and likely pressures Adobe, while signaling tighter immigration enforcement that could affect the broader tech sector.
What to watch
The announcement may prompt faster automation or domestic hiring, mitigating long‑term talent constraints.
Background
The U.S. Department of Labor halted PERM processing for Microsoft and Adobe amid broader investigations into foreign‑worker hiring, reflecting heightened political focus on immigration ahead of midterm elections.
Ticker impact
Microsoft was suspended from the U.S. Department of Labor's PERM green‑card program, causing its shares to fall 1.3% on the news.
downward pressure as the market prices in the PERM suspension and potential hiring constraints.
The suspension directly limits Microsoft’s ability to sponsor green cards, raising uncertainty for its talent pipeline and prompting an immediate share decline.
Adobe was also suspended from the PERM program alongside Microsoft, linking it to the same regulatory risk.
likely pressure as investors assess the impact on Adobe’s hiring and cost structure.
Regulatory suspension mirrors Microsoft’s situation, creating comparable risk for Adobe’s workforce planning.
Market effects
The tech sector may see broader scrutiny of H‑1B and green‑card hiring practices, potentially affecting other large software firms.
U.S. markets could see modest downside in large‑cap tech indices as the news spreads.
International IT services firms reliant on U.S. talent pipelines may experience heightened regulatory risk perception.
Counterpoint
If the suspension is short‑lived, the sell‑off could be overblown and present a buying opportunity on dip.
Key entities
- CompanyMicrosoft
US‑listed software giant (MSFT) suspended from PERM program.
- CompanyAdobe
US‑listed digital media software firm (ADBE) also suspended.
- RegulatorU.S. Department of Labor
Agency that announced the PERM suspensions.



