Why Microsoft and 7 major companies face US green card restrictions
Microsoft and 7 other tech companies face U.S. restrictions on sponsoring foreign workers for green cards, announced by the Trump administration on Oct. 8, 2026. The affected companies include Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini. The Department of Labor will stop accepting new labor certification applications and processing pending ones for these companies, citing concerns about hiring practices.
How this was made
The 30-second read
Why it matters
The move creates uncertainty for foreign professionals and could constrain the talent pipeline for affected companies, potentially raising costs and slowing project execution.
Market read
Regulatory action directly targets hiring practices of major tech service firms, likely prompting short‑term price pressure.
What to watch
The restriction does not affect existing green‑card holders or H‑1B visas, and firms may shift to other visa categories.
Background
The Trump administration announced a suspension of new PERM labor certifications for eight major tech firms, aiming to curb perceived abuse of immigration programs.
Ticker impact
Microsoft is one of eight firms barred from new PERM green‑card certifications, limiting its ability to sponsor foreign workers.
likely downward pressure as investors price in hiring constraints
Regulatory restriction is a fresh, material development directly affecting Microsoft’s labor pipeline.
Adobe faces the same PERM suspension, restricting its sponsorship of foreign employees.
downward pressure from perceived hiring risk
The restriction is a new regulatory action directly impacting Adobe’s workforce strategy.
Cognizant is listed among firms barred from new PERM applications, affecting its U.S. staffing model.
potential share decline as market assesses staffing risk
First‑report regulatory move targeting Cognizant’s core hiring process.
Infosys is subject to the PERM green‑card suspension, limiting its ability to sponsor U.S. employees.
downward pressure from perceived talent‑supply constraints
New government action directly affects Infosys’s U.S. labor strategy.
Wipro is included in the PERM restriction list, restricting new green‑card certifications for its U.S. workforce.
likely modest downside as investors factor in hiring risk
Regulatory restriction is a fresh, material development for Wipro.
Market effects
Technology services and consulting sector may see broader hiring‑risk concerns.
U.S. tech employment landscape could tighten, affecting talent‑intensive firms.
May influence foreign‑owned tech firms with U.S. operations and their stock valuations.
Counterpoint
Companies may offset foreign hiring limits by increasing domestic hiring or using existing H‑1B extensions, limiting impact.
Key entities
- companyMicrosoft
US‑listed software giant
- companyAdobe
US‑listed digital media software provider
- companyCognizant
US‑listed IT services firm
- companyInfosys
India‑based IT services firm with US ADR
- companyWipro
India‑based IT services firm with US ADR
