“U.S. suspends Microsoft, Adobe from green card labor program in foreign worker crackdown”
What actually happened
The Department of Labor said it would stop accepting new Permanent Labor Certification (PERM, the green card sponsorship pathway) applications from a list of companies that includes Cognizant, Infosys, Capgemini, Tata, Wipro and HCL. Separately, Labor Secretary Keith Sonderling said Microsoft and Adobe were suspended "due to multiple active federal investigations," a different stated rationale than the volume-based reasoning given for the outsourcing firms. Vice President JD Vance singled out Microsoft over 2025 layoffs, and Microsoft publicly disputed his characterization the same day.
Key facts
- At least eight companies were suspended from new PERM applications: Microsoft, Adobe, Cognizant, Infosys, Capgemini, Tata, Wipro and HCL, not just the two named in the headline.
- Sonderling cited industry-wide figures (the named companies collectively): almost 3 million foreign worker requests since 2009, 230,000+ H-1B approvals, 100,000+ permanent labor certifications, figures that describe the group, not Microsoft/Adobe specifically.
- Microsoft and Adobe's suspension was attributed to "multiple active federal investigations," a distinct legal basis from the volume-driven suspension of the outsourcing firms.
- Vance claimed Microsoft "replaced" the 6,000 workers laid off in 2025 with H-1B holders; Microsoft countered that 80% of its ~6,000 H-1B filings last fiscal year were extensions or status changes for existing employees, not new hires.
- Microsoft said the vast majority of its U.S. employees are Americans, and that Amazon (35,426 petitions) led all H-1B sponsors in 2026 per Levels.fyi data, with Microsoft fourth at 21,706.
What to watch for
Watch whether DOL releases company-specific evidence for the Microsoft/Adobe "federal investigations" claim, that's the part carrying the most reputational weight and currently rests entirely on Sonderling's unelaborated statement. Also watch whether later coverage separates the outsourcing-firm suspensions (volume) from the Microsoft/Adobe suspensions (fraud allegation), since conflating them is where future headlines are most likely to drift further from the facts.
