The Trump administration said it would suspend several tech firms, including Microsoft Corp., from the Permanent Labor Certification Program, alleging widespread abuse of the worker visa system. Vice President JD Vance said during a briefing in Washington on Thursday that "there has been no company in the United States, unfortunately, that has abused this system more than Microsoft." Labor Secretary Keith Sonderling said Cognizant Technology Solutions Corp., Infosys Ltd., Tata, Wipro Ltd., HCL Technologies Ltd., and Capgemini SE would also be suspended, and that multiple active federal investigations are ongoing. Vance said the suspensions would be indefinite, lasting until the administration believed its concerns were addressed.
The firms named did not immediately respond to requests for comment. Shares of Cognizant fell nearly 1.4% in New York trading, while Microsoft pared earlier gains. American depositary receipts of Infosys and Wipro each fell more than 3.5%.
Silicon Valley's reliance on foreign workers has become a major flashpoint in the immigration debate. The program allows US employers to help sponsor foreign workers for permanent residency. Vance accused companies of making illegitimate representations when applying, saying, "Stop defrauding the American worker." He urged firms, singling out Microsoft and Adobe Inc., to employ more US workers.
The announcement came hours before Trump was set to honor Microsoft CEO Satya Nadella with a National Medal of Science. Business groups have warned the broader immigration crackdown threatens their labor supply and could hurt growth.
Source: Hacker News · Summarized by HeadlinesBriefing