Microsoft barred from sponsoring foreign workers for US residency

Oracle (ORCL) and Microsoft (MSFT) shares dropped after OpenAI's reported revenue run rate was lower than expected, raising concerns about AI investment spending. OpenAI's annualized revenue was $50B, below the previously indicated $70B, due to differing calculation methods. Both companies are heavily invested in AI infrastructure, with Oracle planning significant cloud capacity expansion and Microsoft tied to OpenAI through investments and Azure.

The US government suspended Microsoft, Adobe, and other major tech firms from the PERM green card program, citing alleged fraud and claims of replacing American workers. The suspension affects new and pending PERM applications, impacting companies' ability to sponsor foreign workers for permanent residency. The move is part of the Trump administration's crackdown on skilled foreign labor.

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.

The US suspended Microsoft, Adobe, and major IT firms from a green-card program, citing alleged abuse. Vice President Vance accused Microsoft of laying off US workers while hiring foreign labor. The suspension also covers Cognizant, Infosys, and others. Nine universities, including Harvard and Yale, are under investigation for visa misuse. Microsoft and others denied wrongdoing.