U.S. Suspends Microsoft From Green Card Program Over H-1B Abuse Claims
MSFT sits 52% above its 52-week low of $349.2 on light trading volume (0.2× avg).
Summary
The Trump administration is suspending Microsoft from the employment-based green card program, with Vice President JD Vance accusing the company of laying off U.S. citizens and replacing them with H-1B visa holders. Vance said no other company has abused the system more, alleging Microsoft replaced each laid-off worker with 1.5 foreign workers. The action also targets Adobe, Infosys, Wipro, Tata, Cognizant, Capgemini, HCL, and several tech recruiting firms. Microsoft says 80% of its ~6,000 H-1B applications last fiscal year were for existing employees, and Adobe has not commented. The suspension is from the Permanent Labor Certification programme and is amid federal investigations. Labor Secretary Keith Sonderling announced the restrictions, saying affected companies requested millions of foreign workers since 2009. Microsoft rejected criticism, stating most U.S. employees are American, and maintained that its visa petitions met programme requirements and that its H-1B wages were among the highest reported. This is a direct regulatory hit on Microsoft's ability to retain foreign talent, which is critical for its AI and cloud operations. The suspension could disrupt hiring and retention of skilled workers, adding operational risk. The announcement comes the same day President Trump is set to recognize Microsoft CEO Satya Nadella with a National Medal of Science, highlighting the political tension. Watch for Microsoft's response and any legal challenge, as well as potential impact on H-1B-dependent tech peers.
Updated with a dpa-AFX report · What changed
Updates
· dpa-AFX — Microsoft says 80% of its ~6,000 H-1B applications last fiscal year were for existing employees, and Adobe has not commented.
- Programme Details — The suspension is from the Permanent Labor Certification programme and is amid federal investigations.
- Affected Companies — Restrictions also affect Cognizant, Capgemini, and HCL.
- Official Statements — Labor Secretary Keith Sonderling announced the restrictions, saying affected companies requested millions of foreign workers since 2009. VP Vance criticized Microsoft over its 2025 layoffs.
- Microsoft Response — Microsoft rejected criticism, stating most U.S. employees are American, and maintained that its visa petitions met programme requirements and that its H-1B wages were among the highest reported.
- Medal Ceremony — Trump will present National Medals of Science to tech leaders including Nadella.
All 9 details
- Suspension is from the Permanent Labor Certification programme.
- Suspension is amid federal investigations.
- Restrictions also affect Cognizant, Capgemini, and HCL.
- Labor Secretary Keith Sonderling announced the restrictions.
- VP Vance criticized Microsoft over its 2025 layoffs.
- Microsoft rejected criticism, stating most U.S. employees are American.
- Labor Secretary said affected companies requested millions of foreign workers since 2009.
- Microsoft maintained that its visa petitions met programme requirements and that its H-1B wages were among the highest reported.
- Trump will present National Medals of Science to tech leaders including Nadella.
At the time of this announcement, MSFT was trading at $530.16 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: Dow Jones Newswires.