Microsoft Hit with PERM Suspension and 3,200 Gaming Layoffs Amid Federal Probes
MSFT sits 50% above its 52-week low of $349.2.
Summary
The U.S. Department of Labor suspended Microsoft from the PERM program, blocking new and pending permanent labor certification filings tied to H-1B sponsorship. This follows the Attorney General's claim that Microsoft laid off thousands of U.S. workers while using H-1B visas and green cards. Separately, Microsoft is restructuring its gaming unit under CEO Asha Sharma with about 3,200 job cuts (~20% of gaming staff) planned for fiscal 2027, impacting Halo Studios, developers, and Xbox teams. On the positive side, Azure and Intelligent Cloud revenue jumped 43% year-over-year, with total Microsoft Cloud sales up 27% to $59.3B this quarter and Azure exceeding $100B in annual revenue. The White House also extended H-1B limits to September 2027 and added a $100,000 petition fee, further raising hiring costs for Microsoft. These regulatory and workforce actions introduce legal and operational headwinds that could affect sentiment despite strong cloud momentum.
At the time of this announcement, MSFT was trading at $522.50 on NASDAQ in the Technology sector, with a market capitalization of approximately $3.9T. The 52-week trading range was $349.20 to $553.72. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Wiseek News.