US suspends Microsoft, Adobe and top IT outsourcers from green-card PERM programme

The US is suspending Microsoft, Adobe and several of the world’s largest IT outsourcing firms from the Permanent Labor Certification (PERM) programme, the employer route to green cards for foreign workers.

Labour Secretary Keith Sonderling announced the move at Thursday’s White House event alongside Vice-President JD Vance, suspending Cognizant, Infosys, Tata, Wipro, HCL Technologies and Capgemini from the programme — and Microsoft and Adobe “due to multiple active federal investigations”. “We will not accept any new or process any pending permanent labor certification applications involving these companies,” Sonderling said.

Vance said no US company had abused the system more than Microsoft. “Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers,” he said.

Vance also said nine universities, including Harvard, Yale and Stanford, would be investigated for allegedly bringing in international students to undercut American wages; Labour Inspector General Anthony D’Esposito said subpoenas had already been served.

Officials alleged Microsoft laid off 6,000 US workers in 2025 after certifying it could not find qualified US staff, while being approved for more than 6,000 H-1B visas and filing 3,682 PERM applications — nearly 1,000 for the same roles laid off.

PERM requires employers to certify no qualified, willing and available American worker exists for a post, and is a prerequisite for most employment-based green cards. In September the department had already suspended Cognizant’s filings as part of a fraud probe.

Microsoft did not immediately respond. Infosys and Wipro’s US-listed shares fell nearly 3%.

Sources

• CNA: https://www.channelnewsasia.com/business/us-suspending-permanent-residency-program-microsoft-vance-says-6443266
• The Economic Times: https://economictimes.indiatimes.com/markets/us-stocks/wall-street-guide/infosys-wipro-adrs-fall-nearly-3-after-tcs-earnings-us-crackdown-on-h-1b-linked-green-card-programme/articleshow/134794915.cms?from=mdr
• Business Today: https://www.businesstoday.in/technology/story/setback-for-it-giants-us-suspends-infosys-tata-wipro-hcl-cognizant-as-vance-targets-h-1b-abuse-560529-2026-10-08
• NDTV Profit: https://www.ndtvprofit.com/world/infosys-tcs-wipro-among-it-giants-suspended-from-us-labour-certification-programme-12157882