The United States has suspended eight major technology companies from a key immigration programme that allows employers to sponsor foreign workers for permanent residency, in a move aimed at curbing alleged abuses of employment-based immigration rules.
The companies affected include Microsoft, Adobe, Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, Cognizant and Capgemini.
The decision was announced on October 8 by US Labor Secretary Keith Sonderling alongside Vice President JD Vance as part of President Donald Trump’s broader efforts to tighten immigration policies and prioritise American workers.
Under the suspension, the US Department of Labor will halt the acceptance of new applications and the processing of pending cases involving the eight companies under the Permanent Labor Certification (PERM) programme.
The PERM programme enables US employers to sponsor foreign nationals for employment-based green cards after demonstrating that qualified American workers are unavailable for the positions and that hiring foreign employees would not negatively affect domestic wages and working conditions.
The Trump administration has accused major technology companies of depending heavily on foreign workers while simultaneously reducing their American workforce through layoffs.
Vance specifically criticised Microsoft, questioning why the company continued to sponsor foreign employees while cutting jobs in the United States.
According to the administration, the eight companies have collectively sought nearly three million foreign workers since 2009. They have also received more than 230,000 H-1B visa approvals and over 100,000 permanent labour certifications, officials said.
Microsoft has defended its employment practices, stating that approximately 80% of its H-1B applications during the previous fiscal year involved extensions or changes of status for existing employees rather than applications for new hires.
The suspension does not automatically revoke existing H-1B visas or prevent the affected companies from continuing to employ foreign workers. However, it restricts an important route through which eligible employees can pursue permanent residency in the United States.
The move marks another step in the Trump administration’s efforts to tighten employment-based immigration policies amid concerns over the impact of foreign-worker recruitment on American employment opportunities.
The decision could have significant consequences for technology professionals seeking long-term careers and permanent residency in the United States, particularly those employed by the affected companies.
