Microsoft Suspended From US Green Card Program Amid Immigration Probe
Microsoft Corporation (NASDAQ:MSFT) shares declined 1.35% on Thursday following news that the U.S. Department of Labor suspended the technology giant from a key employment-based immigration program. Federal authorities removed the company, along with multiple IT services firms, from the Permanent Labor Certification program, known as PERM, amid investigations into the potential misuse of immigration guidelines.
The suspension restricts Microsoft's ability to sponsor employees for permanent residency, though it does not block temporary H-1B work visas. The company stated that the vast majority of its recent H-1B applications were intended to extend or modify the status of current staff rather than bringing on new hires. The development drew political scrutiny, with Vice President JD Vance criticizing the corporation's reliance on foreign labor during a period of domestic layoffs.
Investors are also monitoring broader AI sector momentum after reports indicated that OpenAI's annualized revenue reached $50 billion in September, falling about $20 billion short of previous estimates. This shortfall pressured technology stocks, contributing to a 1.4% drop in the Nasdaq 100. Despite these headwinds, market analysts maintain a Strong Buy consensus on Microsoft, which saw its stock rebound 1.08% to 528.2 USD on Friday.
Key points
- The U.S. Department of Labor suspended Microsoft from the PERM green card program during an investigation into immigration rule compliance.
- The suspension restricts employer-sponsored permanent residency applications but does not affect temporary H-1B work visas.
- Broader tech stocks faced pressure after reports showed OpenAI's annualized revenue fell 20 billion USD short of earlier projections.
- Wall Street analysts maintain a Strong Buy consensus on Microsoft, which saw its stock rebound 1.08 percent on Friday.
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How we writeDisclaimerQuestions and answers
Why was Microsoft suspended from the PERM green card program?
The U.S. Department of Labor removed Microsoft from the program during an investigation into the potential misuse of employment-based immigration rules.
Does the PERM suspension affect Microsoft H-1B visas?
No, the suspension only impacts the employer-sponsored green card process and does not block the company from filing temporary H-1B work visas.
How did OpenAI's revenue report affect Microsoft stock?
Reports that OpenAI's annualized revenue was 20 billion USD below earlier projections pressured AI-linked shares, contributing to Microsoft's Thursday stock decline.