US Suspends Microsoft and Other Tech Giants From PERM Visa Program
The United States government has suspended Microsoft Corporation (NASDAQ:MSFT) and several other major technology companies from utilizing the Program Electronic Review Management system. Vice President JD Vance announced the suspensions on Thursday, citing an ongoing investigation into widespread fraud within the H-1B visa program. Other affected companies include Cognizant Technology Solutions Corporation (NASDAQ:CTSH), Infosys Limited (NYSE:INFY), Wipro Limited (NYSE:WIT), and Adobe Inc. (NASDAQ:ADBE).
The suspension of the Program Electronic Review Management, or PERM, prevents these corporations from using existing H-1B visas to apply for permanent residency status for foreign employees. Government officials highlighted that Microsoft laid off 6,000 American workers last year while simultaneously obtaining 6,300 new visas and nearly 3,000 green cards. The administration alleges that tech firms bypass local hiring by placing job advertisements in obscure publications to claim a lack of domestic applicants, thereby replacing domestic workers with lower-paid foreign labor.
Investors will monitor how this regulatory action impacts the talent pipelines and operational costs of the affected technology firms. Additionally, the government has launched a separate investigation into potential J-1 visa fraud at nine prominent American universities, including Harvard University and Stanford University. In the market, Wipro fell 3.29% and Infosys dropped 2.70%, while Microsoft stock remained relatively flat, rising 0.25%.
Key points
- The U.S. government suspended Microsoft and other tech companies from the PERM visa program due to alleged H-1B visa abuse.
- Vice President JD Vance stated that Microsoft laid off 6,000 American workers last year while receiving 6,300 new visas and nearly 3,000 green cards.
- The suspension prevents affected technology firms from applying for permanent resident status for their H-1B workers.
- An investigation has also been initiated into potential J-1 visa fraud at nine elite U.S. universities.
- Shares of Wipro fell 3.29% and Infosys declined 2.70% following the announcement, while Microsoft shares rose slightly by 0.25%.
Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org
How we writeDisclaimerQuestions and answers
Why was Microsoft suspended from the PERM visa program?
The U.S. government suspended Microsoft following investigations into alleged abuse of the H-1B visa program, noting the company laid off 6,000 American workers while obtaining thousands of foreign visas.
Which other tech companies are affected by the PERM suspension?
Other affected companies include Cognizant, Infosys, Wipro, Adobe, HCL, and Capgemini.
What are the details of the university visa investigation?
The government is investigating nine elite universities, including Harvard and Yale, for potential J-1 visa fraud that allegedly undercuts wages for American residents.